Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 115

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 115
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to avoid restrictions on its ability to make dividend payments.

Taxation of Sales, Exchanges, or Other Dispositions

The sale, exchange or redemption of Fund shares
may give rise to a gain or loss. Such gain or loss would generally be treated as capital gain or loss if the Fund shares are held as a
capital asset. In general, any gain or loss realized upon a taxable disposition of shares will be treated as long-term capital gain or
loss if the shares have been held for more than one year. Otherwise, the gain or loss on the taxable disposition of Fund shares will be
treated as short-term capital gain or loss. The maximum capital gain rate applicable to individuals is 20%. Any loss realized upon the
sale or exchange of Fund shares with a holding period of 6 months or less will be treated as a long-term capital loss to the extent of
any capital gain distributions received with respect to such shares. The use of capital losses is subject to limitations. In addition,
all or a portion of a loss realized on a redemption or other disposition of Fund shares may be disallowed under “wash sale”
rules to the extent the shares disposed of are replaced with other substantially identical shares (whether through the reinvestment of
distributions or otherwise) within a 61-day period beginning 30 days before the redemption of the loss shares and ending 30 days after
such date. Any disallowed loss will result in an adjustment to the stockholder’s tax basis in some or all of the other shares acquired.

<div align='center'>B-21</div>

Dividends and distributions on the Fund’s
shares are generally subject to federal income tax as described herein to the extent they do not exceed the Fund’s realized income
and gains, even though such dividends and distributions may economically represent a return of a particular stockholder’s investment.
Such distributions are likely to occur in respect of shares purchased at a time when the Fund’s net asset value reflects gains that
are either unrealized or realized but not distributed. Such realized gains may be required to be distributed even when the Fund’s
net asset value also reflects unrealized losses. Certain distributions declared in October, November or December and paid in the following
January will be taxed to stockholders as if received on December 31 of the year in which they were declared. In addition, certain other
distributions made after the close of a taxable year of the Fund may be “spilled back” and treated as paid by the Fund (except
for