Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 114

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 114
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 Administrator
invests the distribution in newly issued shares of the Fund, the U.S. Holder will generally be treated as receiving a taxable distribution
equal to the fair market value of the stock the U.S. Holder receives.

Under current law, certain income distributions paid
by the Fund to individual taxpayers are taxed at rates equal to those applicable to net long-term capital gains (generally, 20%). This
tax treatment applies only if certain holding period requirements and other requirements are satisfied by the U.S. Holder and the dividends
are attributable to qualified dividend income received by the Fund itself. For this purpose, “qualified dividend income”
means dividends received by the Fund from certain United States corporations (excluding REITs) and qualifying foreign corporations, provided
that the Fund satisfies certain holding period and other requirements in respect of the stock of such corporations. For these purposes,
a “qualified foreign corporation” means any foreign corporation if (i) such corporation is incorporated in a possession of
the United States, (ii) such corporation is eligible for benefits of a qualified comprehensive income tax treaty with the United States
and which includes an exchange of information program, or (iii) the stock of such corporation with respect to which such dividend is
paid is readily tradable on an established securities market in the United States. A “qualified foreign corporation” does
not include any foreign corporation which for the taxable year of the corporation in which the dividend was paid, or the preceding taxable
year, is a “passive foreign investment company” (as defined in the Code). In the case of securities lending transactions,
payments in lieu of dividends are not qualified dividends. The Fund’s dividends, other than qualified dividends and capital gains
dividends, will be fully taxable at ordinary income tax rates unless further legislative action is taken.

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A dividend will not be treated as qualified dividend
income (whether received by the Fund or paid by the Fund to a stockholder) if (1) the dividend is received with respect to any share
held for fewer than 61 days during the 121-day period beginning on the date which is 60 days before the date on which such share becomes
ex- dividend with respect to such dividend, (or fewer than 91 days during the associated 181-day period in the case of certain preferred
stocks), (2) to the extent that the recipient is under an obligation (whether pursuant to a short sale or otherwise) to make related
payments with respect to positions in substantially similar or related