Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 75

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 75
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, a proportionate share of those taxes, (2) would be required to treat such share
of those taxes and of any dividend paid by the Fund that represents income from foreign or U.S. possessions sources as such stockholder’s
own income from those sources, and, if certain conditions are met, (3) could either deduct such Stockholder’s proportionate share
of the foreign taxes deemed paid in computing taxable income or, alternatively, use the foregoing information in calculating the foreign
tax credit against such Stockholder’s federal income tax liability. The Fund will report to Stockholders shortly after each taxable
year their respective shares of foreign taxes paid and the income from sources within, and taxes paid to, foreign countries and U.S.
possessions if it makes this election.

The Fund will inform its Stockholders of the source
and tax status of all distributions after the close of each calendar year.

The Fund may invest in other RICs. In general, the
Code taxes a RIC which satisfies certain requirements as a pass-through entity by permitting a qualifying RIC to deduct dividends paid
to its stockholders in computing the RIC’s taxable income. A qualifying RIC is also generally permitted to pass through the character
of certain types of its income when it makes distributions. For example, a RIC may distribute ordinary dividends to its stockholders,
capital gain dividends, or other types of dividends which effectively pass through the character of the RIC’s income to its stockholders,
including the Fund.

Taxation of Sales, Exchanges or Other Dispositions

Selling Stockholders will generally recognize gain
or loss in an amount equal to the difference between the Stockholder’s adjusted tax basis in the Shares sold and the amount received
in exchange therefor. If the Shares are held as a capital asset, the gain or loss will be a capital gain or loss. Under current law,
the maximum tax rate applicable to capital gains recognized by individuals and other non-corporate taxpayers is (i) the same as the maximum
ordinary income tax rate for gains recognized on the sale of capital assets held for one year or less or (ii) generally, 20% for gains
recognized on the sale of capital assets held for more than one year (as well as certain capital gain dividends). Any loss on a disposition
of Shares held for six months or less will be treated as a long-term capital loss to the extent of any capital gain dividends received
with respect to those Shares. The use of capital losses is subject to limitations