Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 24

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 24
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 conducted.

Federal Income Tax Consequences Associated with the Offering. The following is a general summary of the significant federal income tax consequences of the receipt of Rights
by a Record Date Stockholder and a subsequent lapse or exercise of such Rights. The discussion is based upon applicable provisions of
the Internal Revenue Code of 1986, as amended (the “Code”), the Treasury Regulations promulgated thereunder, and other authorities
currently in effect but does not address any state, local, or foreign tax consequences of the Offering. Each Stockholder should consult
its own tax advisor regarding specific questions as to federal, state, local, or foreign taxes. Each Stockholder should also review the
discussion of certain U.S. federal income tax considerations affecting it and the Fund set forth under “Certain Additional Material
United States Federal Income Tax Considerations.”

For purposes of the following discussion, the term
“Old Share” shall mean a currently outstanding Share with respect to which a Right is issued and the term “New Share”
shall mean a newly issued Share that Record Date Stockholders receive upon the exercise of their Rights.

For all Record Date Stockholders:

Neither the receipt nor the exercise of Rights by
a Record Date Stockholder will result in taxable income to such stockholder for federal income tax purposes regardless of whether or
not the stockholder makes the below-described election which is available under Section 307(b)(2) of the Code (a “Section 307(b)(2)
Election”).

If the fair market value of the Rights distributed
to all of the Record Date Stockholders is 15% or more of the total fair market value of all of the Fund’s outstanding Shares on
the date of distribution, or if a Record Date Stockholder makes a Section 307(b)(2) Election for the taxable year in which such Rights
were received, the Record Date Stockholder’s federal income tax basis in any Right received pursuant to the Offering for purposes
of determining gain or loss on a later sale or exercise of such Rights will be equal to a portion of the Record Date Stockholder’s
existing federal income tax basis in the related Old Share determined in the manner described below. If made, a Section 307(b)(2) Election
is irrevocable and effective with respect to all Rights received by a Record Date Stockholder. A Section 307(b)(2) Election is made by
attaching a statement to the Record Date Stockholder’s federal income tax return for the taxable year of the Record Date (which