Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 76

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 76
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 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 more than 50% of the value of the Fund’s net 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 IRS that will enable
Stockholders, 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 Stockholders and each Stockholder (1) would be required to include
in gross income, and treat as paid by such Stockholder, 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 stockholder’s
own income from those sources, and, if certain conditions are met, (3) could either deduct such Stockholder’s proportionate share
of the foreign taxes deemed paid in computing taxable income or, alternatively, use the foregoing information in calculating the foreign
tax credit against such Stockholder’s federal income tax liability. The Fund will report to Stockholders shortly after each taxable
year their respective shares of foreign taxes paid and the income from sources within, and taxes paid to, foreign countries and U.S.
possessions if it makes this election.

The Fund will