Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 341

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 341
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 for purposes of the 95% gross income test, but there is a risk that such interest income will not be qualifying income for purposes
of the 75% gross income test. We intend to invest in any mortgage debt and mezzanine loans in a manner that will enable us to continue
to satisfy the REIT gross income and asset tests.

Dividends. Our
share of any dividends received from any corporation (including any TRS, but excluding any REIT) in which we own an equity interest will
qualify for purposes of the 95% gross income test but not for purposes of the 75% gross income test. Our share of any dividends received
from any other REIT in which we own an equity interest, if any, will be qualifying income for purposes of both gross income tests.

Fee Income.
Fee income generally will not be qualifying income for purposes of both the 75% and 95% gross income tests. Any fees earned by a TRS will
not be included for purposes of the gross income tests, but will be subject to U.S. federal corporate income tax, as described above.
In addition, we will be subject to a 100% excise tax on any fees earned by a TRS for services provided to us if such fees were pursuant
to an agreement determined by the IRS to be not on an arm’s-length basis.

Foreclosure Property.
We will be subject to tax at the maximum U.S. federal corporate income tax rate (currently 21%) on any income from foreclosure property,
which includes certain foreign currency gains and related deductions, other than income that otherwise would be qualifying income for
purposes of the 75% gross income test, less expenses directly connected with the production of that income. However, gross income from
foreclosure property will qualify under the 75% and 95% gross income tests. Gain from the sale of foreclosure property is not subject
to the 100% tax on prohibited transactions, as described below.

Foreclosure property is any
real property, including interests in real property, and any personal property incident to such real property:

| · | that is acquired by a REIT as the result of the REIT having bid on such property at foreclosure, or having otherwise reduced such property to ownership or possession by agreement or process of law, after there was a default or when default was imminent on a lease of such property or on indebtedness that such property secured; |

| · | for which the related loan was acquired by the RE