Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 26

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 26
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Date Stockholder subsequently sells such New Shares (and holds such Shares as capital assets at the time of their sale), the Record Date
Stockholder will recognize a capital gain or loss equal to the difference between the amount received from the sale of the New Shares
and the Record Date Stockholder’s federal income tax basis in the New Shares as described above. Such capital gain or loss will
be long-term capital gain or loss if the New Shares are sold more than one year after the date that the New Shares are acquired by the
Record Date Stockholder.

For Record Date Stockholders Not Making a Section 307(b)(2) Election When the Fair Market Value of the Rights Distributed is Less than 15% of the Total Fair Market Value of the Fund’s Outstanding Shares:

Lapse of Rights. If the fair market value
of the Rights distributed is less than 15% of the total fair market value of the outstanding Shares and a Record Date Stockholder does
not make a Section 307(b)(2) Election for the taxable year in which such Rights were received, no taxable loss will be realized for federal
income tax purposes if the Record Date Stockholder retains a Right but allows it to lapse without exercise. Moreover, the federal income
tax basis of the related Old Share will not be reduced if such lapse occurs.

Exercise of Rights. If a non-electing Record
Date Stockholder exercises his Rights, the federal income tax basis of the related Old Shares will remain unchanged and the New Shares
will have a federal income tax basis equal to the Subscription Price paid for the New Shares (as increased by any servicing fee charged
to the Record Date Stockholder by his broker, bank or trust company and other similar costs). If the Record Date Stockholder subsequently
sells such New Shares (and holds such Shares as capital assets at the time of their sale), the Record Date Stockholder will recognize
a capital gain or loss equal to the difference between the amount received from the sale of the New Shares and the stockholder’s
federal income tax basis in the New Shares as described above. Such capital gain or loss will be long-term capital gain or loss if the
New Shares are sold more than one year after the Record Date Stockholder acquires the New Shares.

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Employee Plan Considerations. Record
Date Stockholders that are employee benefit plans subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
including corporate savings and 401(k) plans, Keogh