Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 75

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 75
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 distributions or other distributions. See “Distribution Policy” for a more complete description of such
returns and the risks associated with them.

| 48 |

The Fund may elect to retain its net capital gain
or a portion thereof for investment and be taxed at corporate rates on the amount retained. In such case, it may designate the retained
amount as undistributed capital gains in a notice to its Stockholders who will be treated as if each received a distribution of such
Stockholder’s pro rata share of such gain, with the result that each Stockholder will (i) be required to report such Stockholder’s
pro rata share of such gain on such Stockholder’s tax return as long-term capital gain, (ii) receive a refundable tax credit for
such Stockholder’s pro rata share of tax paid by the Fund on the gain and (iii) increase the tax basis for such Stockholder’s
Shares by an amount equal to the deemed distribution less the tax credit.

Under current law, certain income distributions paid
by the Fund to individual taxpayers may be taxed at rates equal to those applicable to net long-term capital gains (generally, 20%).
This tax treatment applies only if certain holding period and other requirements are satisfied by the Stockholder with respect to its
Shares, and the dividends are attributable to qualified dividends received by the Fund itself. For this purpose, “qualified dividends”
means dividends received by the Fund from certain United States corporations (excluding REITs) and certain qualifying foreign corporations,
provided that the Fund satisfies certain holding period and other requirements in respect of the stock of such corporations. 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 gain dividends, will be fully taxable at ordinary income tax rates unless further legislative action
is taken. While certain income distributions to Stockholders may qualify as qualified dividends, the Fund’s seeks to provide dividends
regardless of whether they so qualify. As additional special rules apply to determine whether a distribution will be a qualified dividend,
investors should consult their tax advisors. Investors should also see the Fund’s Statement of Additional Information under the
heading “Certain Material United States Federal Income Tax Consequences” for more information relating to qualified dividends.

Dividends received by the Fund from REITs generally
are not expected to qualify for treatment as qualified dividend income. However, to the extent the Fund invests in REITs, the Fund may
designate