Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 330

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 330
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 gain for that prior
year (the prior year calculation uses the same methodology so, in determining the amount of the distribution in the prior year, one looks
back to the year before and so forth).

We may elect to retain and
pay income tax on the net long-term capital gain we receive in a taxable year. If we so elect, we will be treated as having distributed
any such retained amount for purposes of the 4% nondeductible excise tax described above. We intend to make timely distributions sufficient
to satisfy the annual distribution requirements, and to avoid U.S. federal corporate income tax and the 4% nondeductible excise tax.

It is possible that, from
time to time, we may experience timing differences between the actual receipt of income and actual payment of deductible expenses and
the inclusion of that income and deduction of such expenses in arriving at our REIT taxable income. Additionally, we may not deduct recognized
capital losses from our “REIT taxable income.” Further, from time to time, we may be allocated a share of net capital gain
attributable to the sale of depreciated property that exceeds our allocable share of cash attributable to that sale. We generally will
be required to recognize certain amounts as income no later than the time such amounts are reflected on certain financial statements.

In addition, a taxpayer’s
net interest expense deduction may be limited to 30% of the sum of adjusted taxable income, business interest and certain other amounts.
Adjusted taxable income does not include items of income or expense not allocable to a trade or business, business interest or expense,
the deduction for qualified business income. and NOLs. For partnerships, the interest deduction limit is applied at the partnership level,
subject to certain adjustments to the partners for unused deduction limitation at the partnership level. Disallowed interest expense is
carried forward indefinitely (subject to special rules for partnerships). A “real property trade or business” may elect
out of this interest limit so long as it uses a 40-year recovery period for nonresidential real property, a 30-year recovery period for
residential real property and a 20-year recovery period for related improvements. For this purpose, a real property trade or business
is any real property development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operating, management,
leasing or brokerage trade or business. We believe this definition encompasses our business and thus will allow us the option of electing
out of the limits on interest deductibility should we determine