Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 153

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 153
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8BEN or W-8BEN-E (or other applicable documentation) evidencing eligibility for that reduced treaty rate; or (2) the non-U.S. holder furnishes an IRS Form W-8ECI (or other applicable documentation) claiming that the distribution is income effectively connected with the Non-U.S. Holder’s U.S. trade or business.

Redemption proceeds treated as distributions in excess of the REIT’s current and accumulated earnings and profits generally will not be taxable to a Non-U.S. Holder to the extent that such distributions do not exceed the adjusted tax basis of the Non-U.S. Holder’s Units, but rather will reduce the adjusted tax basis of such Units. To the extent that such redemption proceeds treated as distributions exceed the Non-U.S. Holder’s adjusted tax basis in such Units, they generally will give rise to gain from the sale or exchange of such Units, the tax treatment of which is described below. However, such excess distributions may be treated as dividend income for certain Non-U.S. Holders.

If the Redemption is not treated as a distribution, it generally will be treated as a taxable sale or exchange of the Units. In such case, consequences to the Non-U.S. Holder are generally expected to correspond to the consequences that would occur with respect to a Non-U.S. Holder described above under “Qualification of the Restructuring as an F Reorg” if the Restructuring failed to qualify as an F Reorg.

Information Reporting and Backup Withholding

Payments of dividends with respect to Units, New NHT Shares or NXDT Common Shares generally will not be subject to backup withholding, provided the applicable withholding agent does not have actual knowledge or reason to know the holder is a United States person and the holder either certifies its non-U.S. status, such as by furnishing a valid IRS Form W-8BEN, W-8BEN-E or W-8ECI, or otherwise establishes an exemption. However, information returns are required to be filed with the IRS in connection with any dividends on Units, New NHT Shares or NXDT Common Shares paid to the Non-U.S. Holder, regardless of whether any tax was actually withheld.

Proceeds of the sale or other taxable disposition of Units or New NHT Shares within the United States or conducted through certain U.S.-related brokers generally will not be subject to backup withholding or information reporting, provided the applicable withholding agent does not have actual knowledge or reason to know the holder is a United States person and the holder either