Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 338

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 338
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 of the rules governing
REITs, the ongoing importance of factual determinations and the possibility of future changes in our circumstances, no assurance can
be given by tax counsel or by us that we will qualify as a REIT for any particular year. Paul Hastings L.L.P.’s opinion will not
foreclose the possibility that we may have to use one or more of the REIT savings provisions described below, which could require us
to pay an excise or penalty tax (which could be material) in order for us to maintain our REIT qualification. For a discussion of the
tax consequences of our failure to qualify as a REIT, see “— Failure to Qualify.”

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Taxation of REITs in General

If we maintain our qualification
as a REIT, we generally will not be subject to U.S. federal income tax on the taxable income that we distribute to our stockholders.
The benefit of that tax treatment is that it avoids the “double taxation,” or taxation at both the corporate and stockholder
levels, that generally results from owning stock in a corporation to its stockholders. However, even if we maintain our qualification
as a REIT, we will be subject to U.S. federal tax in the following circumstances:

| · | We will pay U.S. federal                                                                                                              
 income tax on any taxable income, including net capital gain, that we do not distribute to stockholders during, or within a specified 
 time period after, the calendar year in which the income is earned.                                                                   |

| · | We will pay income tax                                    
 at the highest U.S. federal corporate income tax rate on: |

| · | net income from the sale                                                                                               
 or other disposition of property acquired through foreclosure (“foreclosure property”) that we hold primarily for sale 
 to customers in the ordinary course of business, and                                                                   |

| · | other non-qualifying income 
 from foreclosure property.  |

| · | We will pay a 100% tax                                                                                                           
 on our net income from sales or other dispositions of property, other than foreclosure property, that we hold primarily for sale 
 to customers in the ordinary course of business.                                                                                 |

| · | If we fail to satisfy one                                                                                                                 
 or both of the 75% gross income test or the 95% gross income test, as described below under “— Gross Income Tests,”                       
 and nonetheless continue to qualify as a REIT because we meet other requirements, we will pay a