Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 103

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 103
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 will be required to include the full amount of the dividend
as ordinary income to the extent of our current and accumulated earnings and profits, as determined for U.S. federal income tax purposes.
As a result, stockholders may be required to pay income tax with respect to such dividends in excess of the cash dividends received. If
a stockholder sells shares of our stock that it receives as a dividend in order to pay this tax, the sales proceeds may be less than the
amount included in income with respect to the dividend, depending on the market price of the stock at the time of the sale. Furthermore,
with respect to certain non-U.S. holders, we may be required to withhold U.S. federal income tax with respect to such dividends, including
in respect of all or a portion of such dividend that is payable in our stock. If, in any taxable dividend payable in cash and stock, a
significant number of our stockholders determine to sell shares of our stock in order to pay taxes owed on dividends, it may be viewed
as economically equivalent to a dividend reduction and put downward pressure on the market price of our common stock.

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Distributions payable by REITs do not qualify for the reduced tax rates that apply to other corporate distributions.

The maximum U.S. federal income
tax rate applicable to income from “qualified dividends” payable to U.S. stockholders that are individuals, trusts and estates
is currently 20%, plus a 3.8% “Medicare tax” surcharge. Dividends payable by REITs, however, generally are not eligible for
the reduced rates on qualified dividend income. However, for taxable years beginning before January 1, 2026, ordinary REIT dividends
constitute “qualified business income,” and thus a 20% deduction is available to individual taxpayers with respect to such
dividends, resulting in a 29.6% maximum U.S. federal income tax rate (plus the 3.8% surtax on net investment income, if applicable) for
individual U.S. stockholders. However, to qualify for this deduction, the stockholder receiving such dividends must hold the dividend-paying
REIT stock for at least 46 days (considering certain special holding period rules) of the 91-day period beginning 45 days before the stock
becomes ex-dividend, and cannot be under an obligation to make related payments with respect to a position in substantially similar or
related property