Company: SQFTP
Filing Date: 2025-12-18
Form Type: 424B3
Source: 0001493152-25-028343
Chunk: 94

Company: Presidio Property Trust, Inc.
Filing Date: 2025-12-18
Form: 424B3
Chunk 94
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 accumulated earnings and profits, provided that certain conditions are met.

| 61 |

Capital Gain Dividends and Distributions Attributable to a Sale or Exchange of United States Real Property Interests.

Distributions paid to a non-U.S. holder that we properly designate as capital gain dividends, other than those arising from the disposition of a USRPI, generally should not be subject to U.S. federal income taxation, unless:

| (1) | the                                                                                                                                   
 investment in our capital stock is treated as effectively connected income with the conduct by the non-U.S. holder of a trade or      
 business within the United States (and, if required by an applicable income tax treaty, the non-U.S. holder maintains a permanent     
 establishment in the United States to which such dividends are attributable), in which case the non-U.S. holder will be subject to    
 the same treatment as U.S. holders with respect to such gain, except that a non-U.S. holder that is a corporation may also be subject 
 to a branch profits tax of up to 30%, as discussed above; or                                                                          |
| (2) | the                                                                                                                                   
 non-U.S. holder is a nonresident alien individual who is present in the United States for 183 days or more during the taxable year    
 and certain other conditions are met, in which case the non-U.S. holder will be subject to U.S. federal income tax at a rate of 30%   
 on the non-U.S. holder’s capital gains (or such lower rate specified by an applicable income tax treaty), which may be offset         
 by U.S. source capital losses of such non-U.S. holder (even though the individual is not considered a resident of the United States), 
 provided the non-U.S. holder has timely filed U.S. federal income tax returns with respect to such losses.                            |

Pursuant to the Foreign Investment in Real Property Tax Act (“FIRPTA”), distributions to a non-U.S. holder that are attributable to gain from sales, dispositions, or exchanges by us of USRPIs, whether or not designated as capital gain dividends, may cause the non-U.S. holder to be treated as recognizing such gain as income effectively connected with a U.S. trade or business. As a result of FIRPTA, non-U.S. holders generally would either be taxed at (i) the regular graduated federal income tax rates in the case of individuals or (ii) the flat 21% federal corporate income tax rate applicable