Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 113

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 113
---
 any available capital loss carryforwards, plus (iii) 100% of any ordinary income and capital
gain net income from previous years (as previously computed) that were not paid out during such years and on which the Fund paid no U.S.
federal income tax.

Failure to Qualify as a RIC

If the Fund does not qualify as a RIC for any taxable
year, the Fund’s taxable income will be subject to corporate income taxes, and all distributions from earnings and profits, including
distributions of net capital gain (if any), will be taxable to the U.S. Holder as ordinary income. Such distributions generally will
be eligible (i) for the dividends received deduction in the case of corporate U.S. Holders and (ii) for treatment as “qualified
dividends” as discussed below, in the case of individual U.S. Holders provided certain holding period and other requirements are
met, as described below. In addition, in order to requalify for taxation as a RIC, the Fund may be required to recognize unrealized gains,
pay substantial taxes and interest, and make certain distributions.

Taxation of Distributions to U.S. Holders

Distributions from the Fund, except in the case of
distributions of qualified dividend income or capital gain dividends, as described below, generally will be taxable to U.S. Holders as
ordinary dividend income to the extent of the Fund’s current and accumulated earnings and profits. Distributions of net capital
gains (that is, the excess of net gains from the sale of capital assets held more than one year over net losses from the sale of capital
assets held for not more than one year) properly designated as capital gain dividends (“Capital Gain Dividends”) will be
taxable to U.S. Holders as long-term capital gain, regardless of how long a U.S. Holder has held the shares in the Fund. If a U.S. Holder’s
distributions are automatically reinvested pursuant to the Plan and the Plan Administrator invests the distribution in shares acquired
on behalf of the U.S. Holder in open-market purchases, for U.S. federal income tax purposes, the U.S. Holder will generally be treated
as having received a taxable distribution in the amount of the cash dividend that the U.S. Holder would have received if the U.S. Holder
had elected to receive cash. If a U.S. Holder’s distributions are automatically reinvested pursuant to the Plan and the Plan