Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 350

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 350
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. stockholder’s disposition of such stock, even if we do not qualify as a domestically controlled qualified
investment entity at the time the non-U.S. stockholder sells such stock. Under this additional exception, the gain from such a sale by
a non-U.S. stockholder will not be subject to tax under FIRPTA if (1) the applicable class of our capital stock is treated as being
regularly traded on an established securities market under applicable Treasury Regulations and (2) the non-U.S. stockholder owned,
actually or constructively, 10% or less of that class of our Series A Redeemable Preferred Stock at all times during a specified
testing period. Following this offering, our Series A Redeemable Preferred Stock will not be regularly traded on an established securities
market.

In addition, a sale of our
capital stock by a “qualified shareholder” or a “qualified foreign pension fund” who holds our capital stock directly
or indirectly (through one or more partnerships) will not be subject to U.S. federal income tax under FIRPTA. However, while a “qualified
shareholder” will not be subject to FIRPTA withholding on a sale of our capital stock, non-United States persons who hold interests
in the “qualified shareholder” (other than interests solely as a creditor) and hold more than 10% of our capital stock, either
through the “qualified shareholder” or otherwise, will still be subject to FIRPTA withholding.

If the gain on the sale of
our Series A Redeemable Preferred Stock were taxed under FIRPTA, a non-U.S. stockholder would be taxed on that gain in the same manner
as U.S. stockholders, subject to applicable alternative minimum tax and a special alternative minimum tax in the case of nonresident alien
individuals. In addition, distributions that are subject to tax under FIRPTA also may be subject to a 30% branch profits tax when made
to a non-U.S. stockholder treated as a corporation (under U.S. federal income tax principles) that is not otherwise entitled to treaty
exemption. Finally, if we are not a domestically controlled qualified investment entity at the time our capital stock is sold and the
non-U.S. stockholder does not qualify for the exemptions described in the preceding paragraph, under FIRPTA the purchaser of our capital
stock also may be required to withhold 15% of the purchase price and remit this amount to the IRS on behalf of