Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 113

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 113
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 than are ordinary income and short-term capital gains.

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.

<div align='center'>B-20</div>

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 more than 50% of the value of the Fund’s total assets at the close of its taxable
year consists of securities of foreign corporations, it will be eligible to, and may, file an election with the Internal Revenue Service
(the “IRS”) that will enable its U.S. Holders, in effect, to receive the benefit of the foreign tax credit with respect to
any foreign taxes paid by the Fund. Pursuant to the election, the Fund would treat those taxes as dividends paid to its U.S. Holders and
each U.S. Holder (1) would be required to include in gross income, and treat as paid by such U.S. Holder, a proportionate share of those
taxes, (2) would be required to treat such share of those taxes and of any dividend paid by the Fund that represents income from foreign
or U.S. possessions sources as such U.S. Holder’s own income from those sources, and, if certain conditions are met, (3) could either
deduct such U.S. Holder’s proportion