Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 360

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 360
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 income tax rate currently is 37%. The maximum U.S. federal
income tax rate on long-term capital gain applicable to U.S. taxpayers taxed at individual rates is 20%. The maximum U.S. federal income
tax rate on long-term capital gain from the sale or exchange of “Section 1250 property,” or depreciable real property,
is 25%, to the extent that such gain would have been treated as ordinary income if the property were “Section 1245 property.”

With respect to distributions
that we designate as capital gain dividends, and any retained capital gain that we are deemed to distribute, we generally may designate
whether such a distribution is taxable at the 20% rate or the 25% rate to our U.S. stockholders taxed at individual rates. Thus, the tax
rate differential between capital gain and ordinary income for those taxpayers may be significant. In addition, the characterization of
income as capital gain or ordinary income may affect the deductibility of capital losses. A non-corporate taxpayer may deduct capital
losses not offset by capital gains against its ordinary income only up to a maximum annual amount of $3,000 ($1,500 for married individuals
filing separate returns). A non-corporate taxpayer may carry forward unused capital losses indefinitely. A corporate taxpayer must pay
tax on its net capital gain at ordinary U.S. federal corporate income tax rates. A corporate taxpayer may deduct capital losses only to
the extent of capital gains, with unused losses being carried back three years and forward five years.

Medicare Tax.
Certain U.S. stockholders who are individuals, estates or trusts and whose income exceeds certain thresholds will be required to pay a
3.8% Medicare tax. The Medicare tax applies to, among other things, dividends and other income derived from certain trades or business
and net gains from the sale or other disposition of property, such as our Series B Redeemable Preferred Stock, subject to certain
exceptions. Our dividends and any gain from the disposition of our Series B Redeemable Preferred Stock generally are the type of
gain that is subject to the Medicare tax.

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FATCA Withholding.
Under the Foreign Account Tax Compliance Act, or FATCA, a U.S. withholding tax at a 30% rate will be imposed on dividends paid to certain
U.S. stockholders who own our shares through foreign accounts or foreign intermediaries if certain disclosure requirements related to
U.S. accounts or ownership are