Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 335

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 335
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 stockholder
must generally take into account, as ordinary income, distributions made out of our current or accumulated earnings and profits that we
do not designate as capital gain dividends or retained long-term capital gain. For purposes of determining whether a distribution is made
out of our current or accumulated earnings and profits, our earnings and profits will be allocated first to our preferred stock dividends,
if any, and then to our common stock dividends. Individuals, trusts and estates generally may deduct 20% of the “qualified REIT
dividends” (i.e., REIT dividends other than capital gain dividends and portions of REIT dividends designated as “qualified
dividend income,” which in each case are already eligible for capital gain tax rates) they receive. The deduction for qualified
REIT dividends is not subject to the wage and property basis limits that apply to other types of “qualified business income.”
However, to qualify for this deduction, the U.S. stockholder receiving such dividends must hold the dividend-paying REIT stock for at
least 46 days (taking into account certain special holding period rules) of the 91-day period beginning 45 days before the stock becomes
ex-dividend and cannot be under an obligation to make related payments with respect to a position in substantially similar or related
property. The 20% deduction for qualified REIT dividends results in a maximum 29.6% U.S. federal income tax rate on ordinary REIT dividends,
not including the 3.8% Medicare tax, discussed below. Without further legislation, this deduction will sunset after 2025.

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A U.S. stockholder will not
qualify for the dividends received deduction generally available to corporations. Additionally, because we are not generally subject to
U.S. federal income tax on the portion of our REIT taxable income distributed to our stockholders (see “---Taxation of Our Company”
above), our dividends generally will not be eligible for the 20% U.S. federal income tax rate on “qualified dividend income”
(generally, dividends paid by domestic C corporations and certain qualified foreign corporations to U.S. stockholders that are taxed at
individual rates). As a result, our ordinary REIT dividends will be taxed at the higher tax rate applicable to ordinary income. The maximum
income tax rate for qualified dividend income received by U.S. stockholders taxed at individual rates is currently 20%, plus the 3.8%
Medicare tax on net investment income, if