Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 76

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 76
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. For purposes of determining whether Shares have been
held for six months or less, the holding period is suspended for any periods during which the Stockholder’s risk of loss is diminished
as a result of holding one or more other positions in substantially similar or related property, or through certain options or short
sales. Any loss realized on a sale or exchange of Shares will be disallowed to the extent those Shares are replaced by other substantially
identical Shares within a period of 61 days beginning 30 days before and ending 30 days after the date of disposition of the Shares (whether
through the reinvestment of distributions, which could occur, for example, if the Stockholder is a participant in the Plan or otherwise).
In that event, the basis of the replacement Shares will be adjusted to reflect the disallowed loss.

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An investor should be aware that, if Shares are purchased
shortly before the record date for any taxable dividend (including a capital gain dividend), the purchase price likely will reflect the
value of the dividend and the investor then would receive a taxable distribution likely to reduce the trading value of such Shares, in
effect resulting in a taxable return of some of the purchase price. Taxable distributions to individuals and certain other non-corporate
Stockholders, including those who have not provided their correct taxpayer identification number and other required certifications, may
be subject to “backup” federal income tax withholding currently equal to 24%.

An investor should also be aware that the benefits
of the reduced tax rate applicable to long-term capital gains and qualified dividend income may be impacted by the application of the
alternative minimum tax to individual stockholders.

If the Fund utilizes leverage through borrowing,
it may be restricted by loan covenants with respect to the declaration of, and payment of, dividends in certain circumstances. Limits
on the Fund’s payments of dividends may prevent the Fund from meeting the distribution requirements, described above, and may,
therefore, jeopardize the Fund’s qualification for taxation as a RIC and possibly subject the Fund to the 4% excise tax. The Fund
will endeavor to avoid restrictions on its ability to make dividend payments.

Information Reporting

Section 6045B of the Code generally imposes certain
reporting requirements on the Fund with respect to any organizational action that affects the tax basis of the Shares for U.S. federal
income tax purposes. The Fund has historically made return of capital distributions (“ROC Distributions”) to certain Stockholders
and, to the extent such payments continue