Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 116

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 116
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 (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.

| B-21 |

If the Fund acquires any equity interest in certain
foreign corporations that receive at least 75% of their annual gross income from passive sources (such as interest, dividends, certain
rents and royalties, or capital gains) or that hold at least 50% of their assets in investments producing such passive income (“passive
foreign investment companies”), the Fund could be subject to U.S. federal income tax and additional interest charges on “excess
distributions” received from such companies or on gain from the sale of stock in such companies, even if all income or gain actually
received by the Fund is timely distributed to its stockholders. The Fund would not be able to pass through to its stockholders any credit
or deduction for such a tax. An election may generally be available that would ameliorate these adverse tax consequences, but any such
election could require the Fund to recognize taxable income or gain (subject to tax distribution requirements) without the concurrent
receipt of cash and would require certain information to be furnished by the foreign corporation, which may not be provided. These investments
could also result in the treatment of associated capital gains as ordinary income. The Fund may limit and/or manage its holdings in passive
foreign investment companies to limit its tax liability or maximize its return from these investments. Dividends paid by passive foreign
investment companies will not qualify