Company: CLM
Filing Date: 2025-04-21
Form Type: 424B3
Source: 0001398344-25-007380
Chunk: 69

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-21
Form: 424B3
Chunk 69
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 the Fund’s earnings and profits will first reduce the adjusted tax basis of a holder’s Shares and, after
that basis has been reduced to zero, will constitute capital gains to the Stockholder (assuming the Shares are held as a capital asset).
See below for a summary of the maximum tax rates applicable to capital gains (including capital gain dividends). A corporation that owns
Shares generally will not be entitled to the dividends received deduction with respect to all of the dividends it receives from the Fund.
Fund dividend payments that are attributable to qualifying dividends received by the Fund from certain domestic corporations may be designated
by the Fund as being eligible for the dividends received deduction. There can be no assurance as to what portion of Fund dividend payments
may be classified as qualifying dividends. With respect to the monthly distributions of investment company taxable income described above,
it may be the case that any such distributions would result in a return of capital to the Stockholder. The determination of the character
for U.S. federal income tax purposes of any distribution from the Fund (i.e., ordinary income dividends, capital gains dividends,
qualifying dividends, return of capital distributions) will be made as of the end of the Fund’s taxable year. Generally, no later
than 60 days after the close of its taxable year, the Fund will provide Stockholders with a written notice designating the amount of
any capital gain 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