Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 147

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 147
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) all Units actually and constructively owned by the U.S. Holder are redeemed or (ii) all Units actually owned by the U.S. Holder are redeemed and the U.S. Holder is eligible to waive, and effectively waives in accordance with specific rules, the attribution of Units owned by certain family members and the U.S. Holder does not constructively own any other Units. The Redemption will not be essentially equivalent to a dividend with respect to a U.S. Holder if it results in a “meaningful reduction” of the U.S. Holder’s proportionate interest in the REIT. Whether the redemption will result in a meaningful reduction in a U.S. Holder’s proportionate interest in the REIT will depend on the particular facts and circumstances. However, the IRS has indicated in a published ruling that even a small reduction in the proportionate interest of a small minority shareholder in a publicly held corporation who exercises no control over corporate affairs may constitute such a “meaningful reduction.”

U.S. HOLDERS OF UNITS CONTEMPLATING PARTICIPATING IN A REDEMPTION SHOULD CONSULT THEIR TAX ADVISERS CONCERNING THE U.S. FEDERAL, STATE, LOCAL, AND NON-U.S. TAX CONSEQUENCES THEREOF.

Information Reporting and Backup Withholding

A U.S. Holder may be subject to information reporting and backup withholding when such holder receives proceeds from the sale or other taxable disposition of Units or New NHT Shares. Certain U.S. Holders are exempt from backup withholding, including corporations and certain tax-exempt organizations. A U.S. Holder will be subject to backup withholding if such holder is not otherwise exempt and:

| ● | the holder fails to furnish the holder’s taxpayer identification number, which for an individual is ordinarily his or her social security number; |

| ● | the holder furnishes an incorrect taxpayer identification number; |

| ● | the applicable withholding agent is notified by the IRS that the holder previously failed to properly report payments of interest or dividends; or |

| ● | the holder fails to certify under penalties of perjury that the holder has furnished a correct taxpayer identification number and that the IRS has not notified the holder that the holder is subject to backup withholding. |

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a U.S. Holder’s U.S. federal income tax liability, provided the required information is timely furnished to the IRS. U.S. Holders should consult their tax advisors regarding their qualification for