Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 356

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 356
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 received from us. U.S. stockholders
are urged to consult their tax advisors regarding the implications of the additional Medicare tax resulting from an investment in our
capital stock.

A U.S. stockholder generally
will recognize distributions that we designate as capital gain dividends as long-term capital gain without regard to how long the U.S.
stockholder has held our Series B Redeemable Preferred Stock. We generally will designate our capital gain dividends as either 20%
or 25% U.S. federal income tax rate distributions. See “—Capital Gains and Losses.” A corporate U.S. stockholder, however,
may be required to treat up to 20% of certain capital gain dividends as ordinary income.

We may elect to retain and
pay income tax on the net long-term capital gain that we recognize in a taxable year. In that case, to the extent that we designate such
amount in a timely notice to such stockholder, a U.S. stockholder would be taxed on its proportionate share of our undistributed long-term
capital gain. The U.S. stockholder would receive a credit for its proportionate share of the tax we paid. The U.S. stockholder would increase
the basis in its stock by the amount of its proportionate share of our undistributed long-term capital gain, minus its share of the tax
we paid.

A U.S. stockholder will not
incur tax on a distribution in excess of our current and accumulated earnings and profits if the distribution does not exceed the adjusted
basis of the U.S. stockholder’s capital stock. Instead, the distribution will reduce the U.S. stockholder’s adjusted basis
in such stock. If a U.S. stockholder receives a distribution in excess of both our current and accumulated earnings and profits and the
U.S. stockholder’s adjusted basis in his or her stock, the U.S. stockholder will recognize the distribution as long-term capital
gain, or short-term capital gain if the stock has been held for one year or less, assuming the stock is a capital asset in the hands of
the U.S. stockholder. In addition, if we declare a distribution in October, November, or December of any year that is payable to
a U.S. stockholder of record on a specified date in any such month, such distribution will be treated as both paid by us and received
by the U.S. stockholder on December 31 of such year, to the extent of our earnings and profits,