Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 342

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 342
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 3.8% Medicare tax. The Medicare tax applies to, among other things, dividends and other income derived from certain
trades or business and net gains from the sale or other disposition of property, such as our Series A Redeemable Preferred Stock,
subject to certain exceptions. Our dividends and any gain from the disposition of our Series A Redeemable Preferred Stock generally
are the type of gain that is subject to the Medicare tax.

FATCA Withholding. Under the Foreign Account Tax Compliance Act, or FATCA, a U.S. withholding tax at a 30% rate will be imposed
on dividends paid to certain U.S. stockholders who own our shares through foreign accounts or foreign intermediaries if certain disclosure
requirements related to U.S. accounts or ownership are not satisfied. We will not pay any additional amounts in respect of any amounts
withheld.

Taxation of Tax-Exempt Stockholders

This section is a summary
of rules governing the U.S. federal income taxation of U.S. stockholders that are tax-exempt entities and is for general information
only. We urge tax-exempt stockholders to consult their tax advisors to determine the impact of U.S. federal, state and local income tax laws on the purchase, ownership and disposition of our Series A Redeemable Preferred Stock, including any reporting requirements.

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Tax-exempt entities, including
qualified employee pension and profit sharing trusts, and individual retirement accounts, generally are exempt from U.S. federal income
taxation. However, they are subject to taxation on their unrelated business taxable income, or UBTI. Although many investments in real
estate generate UBTI, the IRS has issued a ruling that dividend distributions from a REIT to an exempt employee pension trust do not constitute
UBTI so long as the exempt employee pension trust does not otherwise use the shares of the REIT in an unrelated trade or business of the
pension trust. Based on that ruling, amounts that we distribute to tax-exempt stockholders generally should not constitute UBTI. However,
if a tax-exempt stockholder were to finance (or be deemed to finance) its acquisition of our Series A Redeemable Preferred Stock
with debt, a portion of the income that it receives from us would constitute UBTI pursuant to the “debt-financed property”
rules. Moreover, social clubs, voluntary employee benefit associations, supplemental unemployment benefit trusts and qualified group legal
services plans that are exempt from