Company: CIO
Filing Date: 2025-08-22
Form Type: PREM14A
Source: 0001193125-25-186443
Chunk: 102

Company: City Office REIT, Inc.
Filing Date: 2025-08-22
Form: PREM14A
Chunk 102
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 Less than Six Months A U.S. holder who has held our Common Stock for less than six months at the time of the Merger, taking into account the holding period rules of Sections 246(c)(3) and (4) of the Code, and who recognizes a loss on the exchange of our Common Stock in the Merger, will be treated as recognizing a long-term capital loss to the extent of any capital gain dividends received from us, or such holder’s share of any designated retained capital gains, with respect to such shares. Consequences of the Merger to Non-U.S. Holdersof Our Common Stock General The U.S. federal income tax consequences of the Merger to a non-U.S. holderwill depend on various factors, including whether the receipt of the Common Stock Merger Consideration is treated as a distribution from us to our stockholders that is attributable to gain from the sale of “United States real property interests.” The IRS announced in Notice 2007-55 thatit intends to (1) take the position that under current law, unless an exception applies, a non-U.S. holder’sreceipt of a liquidating distribution from a REIT (which would include the receipt of cash in exchange for Company shares in the Merger, which, as noted above, will be treated as a deemed liquidation for U.S. federal income tax purposes) is generally subject to tax under FIRPTA as a distribution to the extent attributable to gain from the sale of United States real property interests and (2) issue regulations that will be effective for transactions occurring on or after June 13, 2007, clarifying this treatment. As a result, the following paragraphs provide alternative discussions of the tax consequences that would arise to the extent the tax treatment set forth in Notice 2007-55 doesor does not apply. Notwithstanding the discussion in the following paragraphs, we intend to take the position that the cash received in exchange for our Common Stock will be subject to tax in accordance with Notice 2007-55, subjectto the 10% exception described below. In general, the provisions governing the taxation of distributions by REITs can be less favorable to non-U.S. holdersthan the taxation of sales or exchanges of REIT shares by non-U.S. holders, and non-U.S. holdersshould consult their tax advisors regarding the application of these provisions. 65

Distribution of Gain from the Disposition of U.S. Real Property Interests

To the extent the tax treatment set forth in Notice