Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 340

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 340
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. stockholders will recognize no loss on the redemption. If a U.S.
stockholder realizes gain on the redemption, the stockholder will be required to recognize that gain in an amount equal to the lesser
of (1) the gain realized and (2) the amount of cash received, excluding cash attributable to a fractional share. Cash received
in lieu of fractional shares will be treated as described in the paragraph above. U.S. stockholders will realize gain to the extent the
sum of the cash and the fair market value of our Class A common stock received exceeds their adjusted tax basis in the Series A
Redeemable Preferred Stock. A U.S. stockholder’s aggregate basis in our Class A common stock received (including any fractional
share interest) will be equal to the stockholder’s adjusted tax basis in the Series A Redeemable Preferred Stock, decreased
by the amount of cash received (excluding cash attributable to a fractional share) and increased by the amount of gain recognized on the
redemption.

If we elect to pay the entire
redemption price in cash, such redemption of our Series A Redeemable Preferred Stock will be treated under Section 302 of the
Code as a distribution that is taxable as dividend income (to the extent of our current or accumulated earnings and profits), unless the
redemption satisfies certain tests set forth in Section 302(b) of the Code enabling the redemption to be treated as sale of
our Series A Redeemable Preferred Stock (in which case the redemption will be treated in the same manner as a sale described above
in “— Dispositions of Series A Redeemable Preferred Stock”). The redemption will satisfy such tests if it (i) is
“substantially disproportionate” with respect to the holder’s interest in our stock, (ii) results in a “complete
termination” of the holder’s interest in all our classes of stock, or (iii) is “not essentially equivalent to a
dividend” with respect to the holder, all within the meaning of Section 302(b) of the Code. In determining whether any
of these tests have been met, stock considered to be owned by the holder by reason of certain constructive ownership rules set forth
in the Code, as well as stock actually owned, generally must be taken into account. Because the determination as to whether any of the
three alternative tests of Section 302(b) of the Code described above will be satisfied with respect to any particular holder
of our Series A Redeemable