Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 347

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 347
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 Preferred Stock is not regularly traded on an established securities market
in the United States or the non-U.S. stockholder owned more than 10% of our Series A Redeemable Preferred Stock at any time during
the one-year period preceding the distribution, capital gain distributions that are attributable to our sale of USRPIs will be subject
to tax under FIRPTA, as described above. In that case, we must withhold 21% of any distribution that we could designate as a capital gain
dividend. A non-U.S. stockholder may receive a credit against its tax liability for the amount we withhold.

Moreover, if a non-U.S. stockholder
disposes of our Series A Redeemable Preferred Stock during the 30-day period preceding a dividend payment, and such non-U.S. stockholder
(or a person related to such non-U.S. stockholder) acquires or enters into a contract or option to acquire our Series A Redeemable
Preferred Stock within 61 days of the first day of the 30-day period described above, and any portion of such dividend payment would,
but for the disposition, be treated as a USRPI capital gain to such non-U.S. stockholder, then such non-U.S. stockholder will be treated
as having USRPI capital gain in an amount that, but for the disposition, would have been treated as USRPI capital gain.

Although the law is not clear
on the matter, it appears that amounts we designate as retained capital gains in respect of our capital stock held by U.S. stockholders
generally should be treated with respect to non-U.S. stockholders in the same manner as actual distributions by us of capital gain dividends.
Under this approach, a non-U.S. stockholder would be able to offset as a credit against its U.S. federal income tax liability resulting
from its proportionate share of the tax paid by us on such retained capital gains, and to receive from the IRS a refund to the extent
of the non-U.S. stockholder’s proportionate share of such tax paid by us exceeds its actual U.S. federal income tax liability, provided
that the non-U.S. stockholder furnishes required information to the IRS on a timely basis.

Qualified Shareholders. Subject to the exception discussed below, any distribution to a “qualified shareholder”
who holds our capital stock directly or indirectly (through one or more partnerships) will not be subject to U.S. federal income tax as
income