Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 338

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 338
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holder receives a distribution in excess of both our current and accumulated earnings and profits and the
U.S. stockholder’s adjusted basis in his or her stock, the U.S. stockholder will recognize the distribution as long-term capital
gain, or short-term capital gain if the stock has been held for one year or less, assuming the stock is a capital asset in the hands of
the U.S. stockholder. In addition, if we declare a distribution in October, November, or December of any year that is payable to
a U.S. stockholder of record on a specified date in any such month, such distribution will be treated as both paid by us and received
by the U.S. stockholder on December 31 of such year, to the extent of our earnings and profits, provided that we actually pay the
distribution during January of the following calendar year.

U.S. stockholders may not
include in their individual income tax returns any of our net operating losses or capital losses. Instead, these losses are generally
carried over by us for potential offset against our future income. Taxable distributions from us and gain from the disposition of our
Series A Redeemable Preferred Stock will not be treated as passive activity income and, therefore, stockholders generally will not
be able to apply any “passive activity losses,” such as losses from certain types of limited partnerships in which the U.S.
stockholder is a limited partner, against such income or gain. In addition, taxable distributions from us and gain from the disposition
of our Series A Redeemable Preferred Stock generally will be treated as investment income for purposes of the investment interest
limitations. We will notify U.S. stockholders after the close of our taxable year as to the portions of the distributions attributable
to that year that constitute ordinary income, return of capital and capital gain and “qualified REIT dividends.”

Dispositions of Series A Redeemable Preferred Stock. A U.S. stockholder who is not a dealer in securities must generally treat
any gain or loss realized upon a taxable disposition of our Series A Redeemable Preferred Stock as long-term capital gain or loss
if the U.S. stockholder has held our Series A Redeemable Preferred Stock for more than one year, and otherwise as short-term capital
gain or loss. In general, a U.S. stockholder will realize gain or loss in an amount equal to the difference between the sum of the fair
market value of any property and the amount of cash received in such