Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 355

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 355
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 account certain special holding period rules) of the 91-day period beginning 45 days before the stock becomes
ex-dividend and cannot be under an obligation to make related payments with respect to a position in substantially similar or related
property. The 20% deduction for qualified REIT dividends results in a maximum 29.6% U.S. federal income tax rate on ordinary REIT dividends,
not including the 3.8% Medicare tax, discussed below.

A U.S. stockholder will not
qualify for the dividends received deduction generally available to corporations. Additionally, because we are not generally subject to
U.S. federal income tax on the portion of our REIT taxable income distributed to our stockholders (see “---Taxation of Our Company”
above), our dividends generally will not be eligible for the 20% U.S. federal income tax rate on “qualified dividend income”
(generally, dividends paid by domestic C corporations and certain qualified foreign corporations to U.S. stockholders that are taxed at
individual rates). As a result, our ordinary REIT dividends will be taxed at the higher tax rate applicable to ordinary income. The maximum
income tax rate for qualified dividend income received by U.S. stockholders taxed at individual rates is currently 20%, plus the 3.8%
Medicare tax on net investment income, if applicable. By contrast, the maximum U.S. federal income tax rates on ordinary income and REIT
dividend income are currently 37% and 29.6%, respectively, plus the 3.8% Medicare tax on net investment income, if applicable.

However, the 20% U.S. federal
income tax rate for qualified dividend income will apply to our ordinary REIT dividends, if any, that are (1) attributable to dividends
received by us from non-REIT corporations, such as any TRS we may form and (2) attributable to income upon which we have paid U.S.
federal corporate income tax (e.g., to the extent that we distribute less than 100% of our taxable income). In general, to qualify for
the reduced tax rate on qualified dividend income, a stockholder must hold our capital stock for more than 60 days during the 121-day
period beginning on the date that is 60 days before the date on which our capital stock becomes ex-dividend.

Individuals, trusts and estates
whose income exceeds certain thresholds are also subject to an additional 3.8% Medicare tax on dividends