Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 141

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 141
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 and its partners will generally depend on the status of the partners and the activities of the partnership (or other flow-through entity). Partnerships (and other flow-through entities) holding any Units, New NHT Shares or NXDT Common Shares and their partners should consult their tax advisers as to the particular U.S. federal income tax consequences of the Transaction.

This discussion is based on the Code, proposed, temporary and final Treasury regulations promulgated under the Code, and judicial and administrative interpretations thereof, all as of the date hereof. All of the foregoing is subject to change, which change could apply retroactively and could affect the tax considerations described herein. This discussion does not address alternative minimum or Medicare contribution tax considerations, the special tax accounting rules under Section 451(b) of the Code or U.S. federal taxes other than those pertaining to U.S. federal income taxation (such as estate or gift taxes), nor does it address any aspects of U.S. state, local or non-U.S. taxation.

We have not and do not intend to seek any ruling from the U.S. Internal Revenue Service (the “IRS”) regarding any aspect of the Transaction. There can be no assurance that the IRS will not take positions that are inconsistent with those discussed below or that any such positions would not be sustained by a court.

As used herein, the term “U.S. Holder” means a person that for U.S. federal income tax purposes is a beneficial owner of Units, New NHT Shares or NXDT Common Shares received pursuant to the Transaction (or, solely with respect to the discussion below under the heading “—NXDT Common Share Ownership,” other NXDT Common Shares) and is:

| ● | a citizen or individual resident of the United States; |

| ● | a corporation or other entity taxable as a corporation for U.S. federal income tax purposes, created or organized in or under the laws of the United States, any state therein or the District of Columbia; or |

| ● | an estate the income of which is subject to U.S. federal income taxation regardless of its source; or |

| ● | any trust if (1) a court is able to exercise primary supervision over the administration of such trust and one or more U.S. persons have the authority to control all substantial decisions of the trust or (2) it has a valid election in place to be treated as a U.S. person. |

As used herein, the term “Non-U.S. Holder” means a beneficial owner of Units, New NHT