Company: PRIF-PJ
Filing Date: 2025-03-26
Form Type: N-2
Source: 0001554625-25-000027
Chunk: 171

Company: Priority Income Fund, Inc.
Filing Date: 2025-03-26
Form: N-2
Chunk 171
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.S. federal income taxation regardless of its source.

A “non-U.S. preferred stockholder” generally is a beneficial owner of shares of Series M Term Preferred Stock that is neither a U.S. preferred stockholder nor a partnership.

If a partnership (including an entity treated as a partnership for U.S. federal income tax purposes) holds shares of Series M Term Preferred Stock, the tax treatment of a partner in the partnership will generally depend upon the status of the partner and the activities of the partnership. A prospective stockholder that is a partner in a partnership holding shares of Series M Term Preferred Stock should consult his, her or its tax advisers with respect to the purchase, ownership and disposition of shares of Series M Term Preferred Stock.

Tax matters are very complicated and the tax consequences to an investor of an investment in shares of Series M Term Preferred Stock will depend on the facts of his, her or its particular situation. We encourage investors to consult their own tax advisers regarding the specific consequences of such an investment, including tax reporting requirements, the applicability of U.S. federal, state, local and foreign tax laws, eligibility for the benefits of any applicable tax treaty and the effect of any possible changes in the tax laws.

#### Election to be Taxed as a RIC
We have elected, effective as of the date of our formation, to be treated as a RIC under Subchapter M of the Code. As a RIC, we generally will not have to pay U.S. federal income tax on any income that we timely distribute to our stockholders from our tax earnings and profits. To qualify as a RIC, we must, among other things, meet certain source-of income and asset diversification requirements (as described below). In addition, in order to obtain RIC tax treatment, we must distribute to our stockholders, for each taxable year, at least 90% of our “investment company taxable income,” which is generally our net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses and at least 90% of our net tax-exempt interest income, or the “Annual Distribution Requirement.”

#### Taxation as a Regulated Investment Company
If we:

• qualify as a RIC; and

• satisfy the Annual Distribution Requirement,

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then we will not be subject to U.S. federal income tax on the portion of our income we distribute (or are deemed to distribute) to stockholders (including shares of Series M