Company: CLM
Filing Date: 2025-04-21
Form Type: 424B3
Source: 0001398344-25-007380
Chunk: 68

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-21
Form: 424B3
Chunk 68
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 addresses only the U.S. federal income tax consequences of an investment by U.S. Holders (as defined in the Statement
of Additional Information) and assumes that such Stockholders will hold Shares as capital assets, which generally means as property held
for investment. For more detailed information regarding tax considerations, see the Statement of Additional Information under the heading
“Certain Material United States Federal Income Tax Consequences.” There may be other tax considerations applicable to particular
investors. In addition, income earned through an investment in the Fund may be subject to state, local and foreign taxes.

Taxation as a Regulated Investment Company

The Fund intends to elect to be treated and to qualify
each year for taxation as a regulated investment company (a “RIC”) under Subchapter M of the Code. In order for the Fund
to qualify as a RIC, it must, among other requirements, meet income and asset diversification tests each year. If the Fund so qualifies
and satisfies certain distribution requirements, the Fund (but not its Stockholders) will not be subject to federal income tax to the
extent it distributes its investment company taxable income and net capital gains (the excess of net long-term capital gains over net
short-term capital loss) in a timely manner to its Stockholders in the form of dividends or capital gain distributions. The Code imposes
a 4% nondeductible excise tax on RICs, such as the Fund, to the extent they do not meet certain distribution requirements by the end
of each calendar year. The Fund anticipates meeting these distribution requirements.

The Fund intends to make monthly distributions of
investment company taxable income after payment of the Fund’s operating expenses. Unless a Stockholder is ineligible to participate
or elects otherwise, all distributions will be automatically reinvested in additional Shares pursuant to the Fund’s dividend reinvestment
plan (the “Plan”). For U.S. federal income tax purposes, all dividends are generally taxable whether a Stockholder takes
them in cash or they are reinvested pursuant to the Plan in additional Shares. Distributions of the Fund’s investment company taxable
income (including short-term capital gains) will generally be treated as ordinary income to the extent of the Fund’s current and
accumulated earnings and profits. Distributions of the Fund’s net capital gains (“capital gain dividends”), if any,
are taxable to Stockholders as long-term capital gains, regardless of the length of time Shares have been held by Stockholders. Distributions,
if any, in excess of