Company: CLM
Filing Date: 2025-04-21
Form Type: 424B3
Source: 0001398344-25-007380
Chunk: 70

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-21
Form: 424B3
Chunk 70
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, 20%).
This tax treatment applies only if certain holding period and other requirements are satisfied by the Stockholder with respect to its
Shares, and the dividends are attributable to qualified dividends received by the Fund itself. For this purpose, “qualified dividends”
means dividends received by the Fund from certain United States corporations (excluding REITs) and certain qualifying foreign corporations,
provided that the Fund satisfies certain holding period and other requirements in respect of the stock of such corporations. In the case
of securities lending transactions, payments in lieu of dividends are not qualified dividends. The Fund’s dividends, other than
qualified dividends and capital gain dividends, will be fully taxable at ordinary income tax rates unless further legislative action
is taken. While certain income distributions to Stockholders may qualify as qualified dividends, the Fund’s seeks to provide dividends
regardless of whether they so qualify. As additional special rules apply to determine whether a distribution will be a qualified dividend,
investors should consult their tax advisors. Investors should also see the Fund’s Statement of Additional Information under the
heading “Certain Material United States Federal Income Tax Consequences” for more information relating to qualified dividends.

Dividends received by the Fund from REITs generally
are not expected to qualify for treatment as qualified dividend income. However, to the extent the Fund invests in REITs, the Fund may
designate dividends it pays to its Stockholders as “Section 199A dividends” so that individual and non-corporate Stockholders
may be eligible for a 20% deduction with respect to such dividends, provided such Stockholders have satisfied the holding period requirement
for the Fund’s Shares and certain other conditions. The amount of Section 199A dividends that the Fund may pay and report to its
Stockholders is limited to the excess of the ordinary REIT dividends, other than capital gain dividends and portions of REIT dividends
designated as qualified dividend income that the Fund receives from REITs for a taxable year over the Fund’s expenses allocable
to such dividends.

| 49 |

Dividends and interest received, and gains realized,
by the Fund on foreign securities may be subject to income, withholding or other taxes imposed by foreign countries and U.S. possessions
(collectively “foreign taxes”) that would reduce the return on its securities. Tax conventions between certain countries
and the United States, however, may reduce or eliminate foreign taxes, and many foreign countries do not impose taxes on capital gains
in respect of investments by foreign investors. If