Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 117

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 117
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 as qualified dividend income eligible for taxation at reduced tax rates.

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.

Taxation of Sales, Exchanges, or Other Dispositions

The sale, exchange or redemption of Fund shares may
give rise to a gain or loss. Such gain or loss would generally be treated as capital gain or loss if the Fund shares are held as a capital
asset. In general, any gain or loss realized upon a taxable disposition of shares will be treated as long-term capital gain or loss if
the shares have been held for more than one year. Otherwise, the gain or loss on the taxable disposition of Fund shares will be treated
as short-term capital gain or loss. The maximum capital gain rate applicable to individuals is 20%. Any loss realized upon the sale or
exchange of Fund shares with a holding period of 6 months or less will be treated as a long-term capital loss to the extent of any capital
gain distributions received with respect to such shares. The use of capital losses is subject to limitations. In addition, all or a portion
of a loss realized on a redemption or other disposition of Fund shares may be disallowed under “wash sale” rules to the extent
the shares disposed of are replaced with other substantially identical shares (whether through the reinvestment of distributions or otherwise)
within a 61-day period beginning 30 days before the redemption of the loss shares and ending 30 days after such date. Any disallowed
loss will result in an adjustment to the stockholder’s tax basis in some or all of the other shares acquired.

Dividends and distributions on the Fund’s shares
are generally subject to federal income tax as described herein to the extent they do not exceed the Fund’s realized income and
gains, even though such dividends and distributions may economically represent a return of a particular stockholder’s investment.
Such distributions are likely to occur in respect of shares purchased at a time when the Fund’s net asset value reflects gains
that are either unrealized or realized but not distributed. Such realized gains may be required to