Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 74

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 74
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eductible excise tax on RICs, such as the Fund, to the extent they do not meet certain distribution requirements by the end
of each calendar year. The Fund anticipates meeting these distribution requirements.

The Fund intends to make monthly distributions of
investment company taxable income after payment of the Fund’s operating expenses. Unless a Stockholder is ineligible to participate
or elects otherwise, all distributions will be automatically reinvested in additional Shares pursuant to the Fund’s dividend reinvestment
plan (the “Plan”). For U.S. federal income tax purposes, all dividends are generally taxable whether a Stockholder takes
them in cash or they are reinvested pursuant to the Plan in additional Shares. Distributions of the Fund’s investment company taxable
income (including short-term capital gains) will generally be treated as ordinary income to the extent of the Fund’s current and
accumulated earnings and profits. Distributions of the Fund’s net capital gains (“capital gain dividends”), if any,
are taxable to Stockholders as long-term capital gains, regardless of the length of time Shares have been held by Stockholders. Distributions,
if any, in excess of the Fund’s earnings and profits will first reduce the adjusted tax basis of a holder’s Shares and, after
that basis has been reduced to zero, will constitute capital gains to the Stockholder (assuming the Shares are held as a capital asset).
See below for a summary of the maximum tax rates applicable to capital gains (including capital gain dividends). A corporation that owns
Shares generally will not be entitled to the dividends received deduction with respect to all of the dividends it receives from the Fund.
Fund dividend payments that are attributable to qualifying dividends received by the Fund from certain domestic corporations may be designated
by the Fund as being eligible for the dividends received deduction. There can be no assurance as to what portion of Fund dividend payments
may be classified as qualifying dividends. With respect to the monthly distributions of investment company taxable income described above,
it may be the case that any such distributions would result in a return of capital to the Stockholder. The determination of the character
for U.S. federal income tax purposes of any distribution from the Fund (i.e., ordinary income dividends, capital gains dividends,
qualifying dividends, return of capital distributions) will be made as of the end of the Fund’s taxable year. Generally, no later
than 60 days after the close of its taxable year, the Fund will provide Stockholders with a written notice designating the amount of
any capital gain