Company: SQFTP
Filing Date: 2025-10-28
Form Type: DRS
Source: 0001493152-25-019889
Chunk: 67

Company: Presidio Property Trust, Inc.
Filing Date: 2025-10-28
Form: DRS
Chunk 67
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 U.S. federal income tax purposes, commencing with our taxable year ended December 31, 2000, we have been organized and have operated in conformity with the requirements for qualification and taxation as a REIT under the Code, and our proposed method of operation will enable us to continue to meet the requirements for qualification and taxation as a REIT under the Code. It must be emphasized that this opinion will be based on various assumptions and representations as to factual matters, including representations made by us in a factual certificate provided by one or more of our officers. In addition, this opinion will be based upon our factual representations set forth in this prospectus. Moreover, our qualification and taxation as a REIT depends upon our ability to meet the various qualification tests imposed under the Code, which are discussed below, including through actual operating results, asset composition, distribution levels and diversity of stock ownership, the results of which have not been and will not be reviewed by Whiteford. Accordingly, no assurance can be given that our actual results of operation for any particular taxable year have satisfied or will satisfy those requirements. Further, the anticipated U.S. federal income tax treatment described herein may be changed, perhaps retroactively, by legislative, administrative or judicial action at any time. Whiteford has no obligation to update its opinion subsequent to the date of such opinion.

Provided we qualify for taxation as a REIT, we generally will not be required to pay U.S. federal corporate income taxes on our REIT taxable income that is currently distributed to our stockholders. This treatment substantially eliminates the “double taxation” that ordinarily results from investment in a C corporation. A C corporation is a corporation that generally is required to pay tax at the corporate level. Double taxation means taxation once at the corporate level when taxable income is earned and once again at the stockholder level when the income is distributed. We will, however, be required to pay U.S. federal income tax as follows:

| ● | First,                                                                                                                                   
 we will be required to pay regular U.S. federal corporate income tax on any undistributed REIT taxable income, including undistributed   
 net capital gains.                                                                                                                       |
| ● | Second,                                                                                                                                  
 if we have (1) net income from the sale or other disposition of “foreclosure property” held primarily for sale to customers              
 in the ordinary course of business or (2) other nonqualifying income from foreclosure property, we will be required to pay tax at        
 the highest corporate rate on this income. To the extent that income from foreclosure