Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 357

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 357
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 one of those safe harbors, or the private placement exclusion, interests
in a partnership will not be treated as readily tradable on a secondary market or the substantial equivalent thereof if (1) all interests
in the partnership were issued in a transaction or transactions that were not required to be registered under the Securities Act and (2) the
partnership does not have more than 100 partners at any time during the partnership’s taxable year. In determining the number of
partners in a partnership, a person owning an interest in a partnership, grantor trust or S corporation that owns an interest in the partnership
is treated as a partner in such partnership only if (1) substantially all of the value of the owner’s interest in the entity
is attributable to the entity’s direct or indirect interest in the partnership and (2) a principal purpose of the use of the
entity is to permit the partnership to satisfy the 100-partner limitation. We believe that our Operating Partnership and any other Partnership
in which we own an interest will qualify for the private placement exception.

We have not requested, and
do not intend to request, a ruling from the IRS that our Operating Partnership will be classified as a partnership for U.S. federal income
tax purposes. If for any reason our Operating Partnership were taxable as a corporation, rather than as a partnership, for U.S. federal
income tax purposes, we likely would not be able to qualify as a REIT unless we qualified for certain relief provisions. See “—Gross
Income Tests” and “—Asset Tests.” In addition, any change in a Partnership’s status for tax purposes might
be treated as a taxable event, in which case we might incur tax liability without any related cash distribution. Further, items of income
and deduction of such Partnership would not pass through to its partners, and its partners would be treated as stockholders for tax purposes.
Consequently, such Partnership would be required to pay tax at U.S. federal corporate income tax rates on its net income, and distributions
to its partners would constitute dividends that would not be deductible in computing such Partnership’s taxable income.

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Income Taxation of the Partnerships and their Partners

Partners, Not the Partnerships, Subject to Tax. A partnership is generally not a taxable entity for U.S. federal income tax purposes.
Rather, we are required to take into account our allocable share of each Partnership’s income, gains, losses, deductions and credits
for any taxable