Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 341

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 341
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 Preferred Stock depends upon the facts and circumstances at the time that the determination must be made,
prospective investors are advised to consult their tax advisors to determine such tax treatment. If a cash redemption of our Series A
Redeemable Preferred Stock does not meet any of the three tests described above, the redemption proceeds will be treated as a distribution,
as described above under “—Distributions on Our Series A Redeemable Preferred Stock.”

Stockholders should consult
with their tax advisors regarding the taxation of any particular redemption of our Series A Redeemable Preferred Stock.

Capital Gains and Losses. A taxpayer generally must hold a capital asset for more than one year for gain or loss derived from its
sale or exchange to be treated as long-term capital gain or loss. The highest marginal U.S. federal individual income tax rate currently
is 37%. The maximum U.S. federal income tax rate on long-term capital gain applicable to U.S. taxpayers taxed at individual rates is 20%.
The maximum U.S. federal income tax rate on long-term capital gain from the sale or exchange of “Section 1250 property,”
or depreciable real property, is 25%, to the extent that such gain would have been treated as ordinary income if the property were “Section 1245
property.”

With respect to distributions
that we designate as capital gain dividends, and any retained capital gain that we are deemed to distribute, we generally may designate
whether such a distribution is taxable at the 20% rate or the 25% rate to our U.S. stockholders taxed at individual rates. Thus, the tax
rate differential between capital gain and ordinary income for those taxpayers may be significant. In addition, the characterization of
income as capital gain or ordinary income may affect the deductibility of capital losses. A non-corporate taxpayer may deduct capital
losses not offset by capital gains against its ordinary income only up to a maximum annual amount of $3,000 ($1,500 for married individuals
filing separate returns). A non-corporate taxpayer may carry forward unused capital losses indefinitely. A corporate taxpayer must pay
tax on its net capital gain at ordinary U.S. federal corporate income tax rates. A corporate taxpayer may deduct capital losses only to
the extent of capital gains, with unused losses being carried back three years and forward five years.

Medicare Tax. Certain U.S. stockholders who are individuals, estates or trusts and whose income exceeds certain thresholds will
be required to pay a