Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 349

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 349
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 to be counted as satisfying the annual distribution requirement
for REITs and to provide us with the REIT-level tax deduction, such distributions must not be “preferential dividends.” A
dividend is not a preferential dividend if that distribution is (1) pro rata among all outstanding shares within a particular class
and (2) in accordance with the preferences among different classes of shares as set forth in our organizational documents. However,
the preferential dividend rule does not apply to “publicly offered REITs.” Currently, we are a “publicly offered
REIT.”

We will pay U.S. federal income
tax on taxable income, including net capital gain, that we do not distribute to stockholders. Furthermore, if we fail to distribute during
a calendar year, or by the end of January following the calendar year in the case of distributions with declaration and record dates
falling in the last three months of the calendar year, at least the sum of:

| · | 85% of our REIT ordinary income for such year, |

| · | 95% of our REIT capital gain net income for such year, and |

| · | any undistributed taxable income (ordinary and capital gain) from all prior periods, |

then, we will incur a 4% nondeductible excise
tax on the excess of such required distribution over the amounts we actually distribute. In making this calculation, the amount that a
REIT is treated as having “actually distributed” during the current taxable year is both the amount distributed during the
current year and the amount by which the distributions during the prior year exceeded its taxable income and capital gain for that prior
year.

We may elect to retain and
pay income tax on the net long-term capital gain we receive in a taxable year. If we so elect, we will be treated as having distributed
any such retained amount for purposes of the 4% nondeductible excise tax described above. We intend to make timely distributions sufficient
to satisfy the annual distribution requirements, and to avoid U.S. federal corporate income tax and the 4% nondeductible excise tax.

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It is possible that, from
time to time, we may experience timing differences between the actual receipt of income and actual payment of deductible expenses and
the inclusion of that income and deduction of such expenses in arriving at our REIT taxable income. Additionally, we may not deduct recognized
capital losses from our “REIT