Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 112

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 112
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dividends are attributable to qualified dividend income received by the Fund itself. For this purpose, “qualified dividend income”
means dividends received by the Fund from certain United States corporations (excluding REITs) and qualifying foreign corporations, provided
that the Fund satisfies certain holding period and other requirements in respect of the stock of such corporations. For these purposes,
a “qualified foreign corporation” means any foreign corporation if (i) such corporation is incorporated in a possession of
the United States, (ii) such corporation is eligible for benefits of a qualified comprehensive income tax treaty with the United States
and which includes an exchange of information program, or (iii) the stock of such corporation with respect to which such dividend is paid
is readily tradable on an established securities market in the United States. A “qualified foreign corporation” does not include
any foreign corporation which for the taxable year of the corporation in which the dividend was paid, or the preceding taxable year, is
a “passive foreign investment company” (as defined in the Code). In the case of securities lending transactions, payments
in lieu of dividends are not qualified dividends. The Fund’s dividends, other than qualified dividends and capital gains dividends,
will be fully taxable at ordinary income tax rates unless further legislative action is taken.

A dividend will not be treated as qualified dividend
income (whether received by the Fund or paid by the Fund to a stockholder) if (1) the dividend is received with respect to any share held
for fewer than 61 days during the 121-day period beginning on the date which is 60 days before the date on which such share becomes ex-
dividend with respect to such dividend, (or fewer than 91 days during the associated 181-day period in the case of certain preferred stocks),
(2) to the extent that the recipient is under an obligation (whether pursuant to a short sale or otherwise) to make related payments with
respect to positions in substantially similar or related property, or (3) if the recipient elects to have the dividend treated as investment
income for purposes of the limitation on deductibility of investment interest. Distributions of income by the Fund, other than qualified
dividend income and capital gains dividends, are taxed as ordinary income, at rates currently up to 37% for taxpayers other than corporations.

We cannot assure you as to what percentage of
the dividends paid on the shares will consist of qualified dividend income or long-term capital gains, both of which are taxed at lower
rates for individuals