Company: CIO
Filing Date: 2025-08-22
Form Type: PREM14A
Source: 0001193125-25-186443
Chunk: 101

Company: City Office REIT, Inc.
Filing Date: 2025-08-22
Form: PREM14A
Chunk 101
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 the Common Stock Merger Consideration and the assumption of the Company’s liabilities, followed by a deemed liquidation of the Company under Section 331 and Section 562 of the Code. We will be deemed to have distributed the Common Stock Merger Consideration to our stockholders in connection with the deemed liquidation. The liquidating distribution will be treated as a dividend for purposes of the dividend paid deduction to the extent of our earnings and profits and thus will be sufficient to satisfy our requirement to distribute 90% of our REIT taxable income for the taxable year of the Merger. 64

Consequences of the Merger to U.S. Holders of Our Common Stock General The receipt of cash by U.S. holders in exchange for their shares pursuant to the Merger will be a taxable transaction for U.S. federal income tax purposes. In general, a U.S. holder of our Common Stock will recognize gain or loss for U.S. federal income tax purposes equal to the difference between:

| • |     | the amount of cash received in exchange for our Common Stock; and |

| • |     | the U.S. holder’s adjusted tax basis in our Common Stock. |

Gain or loss will be calculated separately for each block of shares, with a block consisting of shares acquired at the same cost in a single transaction. Assuming that the shares constitute capital assets in the hands of the U.S. holders, this gain or loss will generally be capital gain or loss and will be long-term capital gain or loss if at the time of the Merger the shares have been held for more than one year. An individual U.S. holder will be subject to tax on net capital gain at a reduced maximum U.S. federal income tax rate (20% under current law). Additionally, a 3.8% Medicare unearned contribution tax will apply to any gain recognized by individuals, trusts and estates whose income exceeds certain threshold levels. Capital gains of corporate U.S. holders generally are taxable at the regular tax rate applicable to corporations. The deductibility of a capital loss recognized in the exchange is subject to limitations under the Code. In addition, the IRS has the authority to prescribe, but has not yet prescribed, regulations that would apply a tax rate of 25% to a portion of capital gain realized by a non-corporate stockholderon the sale of REIT shares that would correspond to the REIT’s “unrecaptured section 1250 gain.” Special Rule for U.S. Holders Who Have Held our Common Stock for