Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 357

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 357
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 provided that we actually pay the
distribution during January of the following calendar year.

U.S. stockholders may not
include in their individual income tax returns any of our net operating losses or capital losses. Instead, these losses are generally
carried over by us for potential offset against our future income. Taxable distributions from us and gain from the disposition of our
Series B Redeemable Preferred Stock will not be treated as passive activity income and, therefore, stockholders generally will not
be able to apply any “passive activity losses,” such as losses from certain types of limited partnerships in which the U.S.
stockholder is a limited partner, against such income or gain. In addition, taxable distributions from us and gain from the disposition
of our Series B Redeemable Preferred Stock generally will be treated as investment income for purposes of the investment interest
limitations. We will notify U.S. 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 and “qualified REIT dividends.”

Dispositions of Series B Redeemable Preferred Stock. A U.S. stockholder who is not a dealer in securities must generally treat any gain or loss realized
upon a taxable disposition of our Series B Redeemable Preferred Stock as long-term capital gain or loss if the U.S. stockholder has
held our Series B Redeemable Preferred Stock for more than one year, and otherwise as short-term capital gain or loss. In general,
a U.S. stockholder 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. stockholder’s adjusted tax basis. A stockholder’s adjusted
tax basis generally will equal the U.S. stockholder’s acquisition cost, increased by the excess of net capital gains deemed distributed
to the U.S. stockholder (discussed above) less tax deemed paid on such gains, and reduced by any returns of capital. However, a U.S. stockholder
must treat any loss upon a sale or exchange of Series B Redeemable Preferred Stock held by such stockholder 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.
stockholder treats as long-term capital gain. All or a portion of any loss that a U.S. stockholder realizes upon