Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 140

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 140
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 is a limited partner, against such income. In addition, taxable distributions from us and gain from the disposition of our
shares of capital stock generally will be treated as investment income for purposes of the investment interest limitations. Similarly,
for taxable years beginning after December 31, 2017, non-corporate stockholders cannot apply “excess business losses”
against dividends that we distribute and gains arising from the disposition of our common stock. Dividends that we distribute, to the
extent they do not constitute a return of capital, generally will be treated as investment income for purposes of computing the investment
interest limitation. A U.S. stockholder that elects to treat capital gain dividends, capital gains from the disposition of shares or
qualified dividend income as investment income for purposes of the investment interest limitation will be taxed at the ordinary income
tax rate on such amounts. We will notify stockholders after the close of our taxable year as to the portions of the distributions attributable
to that year that constitute ordinary income, return of capital and capital gain.

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Taxation of Taxable U.S. Holders on the Disposition of Shares. In general, a U.S. holder who is not a dealer in securities
must treat any gain or loss realized upon a taxable disposition of our shares of capital stock as long-term capital gain or loss if the
U.S. holder has held such shares of capital stock for more than one year and otherwise as short-term capital gain or loss. In general,
a U.S. holder will realize gain or loss in an amount equal to the difference between the sum of the fair market value of any property
and the amount of cash received in such disposition and the U.S. holder’s adjusted tax basis. A holder’s adjusted tax basis
generally will equal the U.S. holder’s acquisition cost, increased by the excess of net capital gain deemed distributed to the
U.S. holder (discussed above) less tax deemed paid by such U.S. holder on such gains and reduced by any returns of capital. However,
a U.S. holder must treat any loss upon a sale or exchange of shares of capital stock held by such holder for six months or less as a
long-term capital loss to the extent of capital gain dividends and any other actual or deemed distributions from us that such U.S. holder
treats as long term capital gain. All or a portion of any loss that a U.S. holder realizes upon a taxable disposition of our shares