Company: CLM
Filing Date: 2025-04-21
Form Type: 424B3
Source: 0001398344-25-007380
Chunk: 111

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-21
Form: 424B3
Chunk 111
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 amount of Section 199A dividends that the Fund may pay and report to its
Stockholders is limited to the excess of the ordinary REIT dividends, other than capital gain dividends and portions of REIT dividends
designated as qualified dividend income that the Fund receives from REITs for a taxable year over the Fund’s expenses allocable
to such dividends.

Dividends and interest received, and gains realized,
by the Fund on foreign securities may be subject to income, withholding or other taxes imposed by foreign countries and U.S. possessions
(collectively “foreign taxes”) that would reduce the return on its securities. Tax conventions between certain countries
and the United States, however, may reduce or eliminate foreign taxes, and many foreign countries do not impose taxes on capital gains
in respect of investments by foreign investors. If more than 50% of the value of the Fund’s total assets at the close of its taxable
year consists of securities of foreign corporations, it will be eligible to, and may, file an election with the Internal Revenue Service
(the “IRS”) that will enable its U.S. Holders, in effect, to receive the benefit of the foreign tax credit with respect to
any foreign taxes paid by the Fund. Pursuant to the election, the Fund would treat those taxes as dividends paid to its U.S. Holders
and each U.S. Holder (1) would be required to include in gross income, and treat as paid by such U.S. Holder, a proportionate share of
those taxes, (2) would be required to treat such share of those taxes and of any dividend paid by the Fund that represents income from
foreign or U.S. possessions sources as such U.S. Holder’s own income from those sources, and, if certain conditions are met, (3)
could either deduct such U.S. Holder’s proportionate share of the foreign taxes deemed paid in computing taxable income or, alternatively
use the foregoing information in calculating the foreign tax credit against such U.S. Holder’s federal income tax liability (but
IRA accounts may not be able to use the foreign tax credit). The Fund will report to its stockholders shortly after each taxable year
their respective shares of foreign taxes paid and the income from sources within, and taxes paid to, foreign countries and U.S. possessions
if it makes this election. The rules relating to the foreign tax credit are complex. Each stockholder should consult his own tax adviser
regarding the potential application of foreign tax credits.

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