Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 102

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 102
---
ered REITs.” Pursuant to Revenue Procedure 2017-45, the IRS will treat the distribution of stock pursuant to an elective cash/stock
dividend as a distribution of property under Section 301 of the Code (i.e., a dividend), as long as at least 20% of the total dividend
is available in cash and certain other parameters detailed in the Revenue Procedure are satisfied. On November 30, 2021, the IRS
issued Revenue Procedure 2021-53, which temporarily reduced (through June 30, 2022) the minimum amount of the distribution that must
be available in cash to 10%.

If we make any taxable dividend
payable in cash and common stock, taxable stockholders receiving such dividend will be required to include the full amount of the dividend
as ordinary income to the extent of our current and accumulated earnings and profits, as determined for U.S. federal income tax purposes.
As a result, stockholders may be required to pay income tax with respect to such dividends in excess of the cash dividends received. If
a stockholder sells shares of our stock that it receives as a dividend in order to pay this tax, the sales proceeds may be less than the
amount included in income with respect to the dividend, depending on the market price of the stock at the time of the sale. Furthermore,
with respect to certain non-U.S. holders, we may be required to withhold U.S. federal income tax with respect to such dividends, including
in respect of all or a portion of such dividend that is payable in our stock. If, in any taxable dividend payable in cash and stock, a
significant number of our stockholders determine to sell shares of our stock in order to pay taxes owed on dividends, it may be viewed
as economically equivalent to a dividend reduction and put downward pressure on the market price of our common stock.

<div align='center'>50</div>

Distributions payable by REITs do not qualify for the reduced tax rates that apply to other corporate distributions.

The maximum U.S. federal income
tax rate applicable to income from “qualified dividends” payable to U.S. stockholders that are individuals, trusts and estates
is currently 20%, plus a 3.8% “Medicare tax” surcharge. Dividends payable by REITs, however, generally are not eligible for
the reduced rates on qualified dividend income. However, for taxable years beginning before January 1, 2026, ordinary REIT