Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 77

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 77
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 inform its Stockholders of the source
and tax status of all distributions after the close of each calendar year.

The Fund may invest in other RICs. In general, the
Code taxes a RIC which satisfies certain requirements as a pass-through entity by permitting a qualifying RIC to deduct dividends paid
to its stockholders in computing the RIC’s taxable income. A qualifying RIC is also generally permitted to pass through the character
of certain types of its income when it makes distributions. For example, a RIC may distribute ordinary dividends to its stockholders,
capital gain dividends, or other types of dividends which effectively pass through the character of the RIC’s income to its stockholders,
including the Fund.

Taxation of Sales, Exchanges or Other Dispositions

Selling Stockholders will generally recognize gain
or loss in an amount equal to the difference between the Stockholder’s adjusted tax basis in the Shares sold and the amount received
in exchange therefor. If the Shares are held as a capital asset, the gain or loss will be a capital gain or loss. Under current law,
the maximum tax rate applicable to capital gains recognized by individuals and other non-corporate taxpayers is (i) the same as the maximum
ordinary income tax rate for gains recognized on the sale of capital assets held for one year or less or (ii) generally, 20% for gains
recognized on the sale of capital assets held for more than one year (as well as certain capital gain dividends). Any loss on a disposition
of Shares held for six months or less will be treated as a long-term capital loss to the extent of any capital gain dividends received
with respect to those Shares. The use of capital losses is subject to limitations. For purposes of determining whether Shares have been
held for six months or less, the holding period is suspended for any periods during which the Stockholder’s risk of loss is diminished
as a result of holding one or more other positions in substantially similar or related property, or through certain options or short
sales. Any loss realized on a sale or exchange of Shares will be disallowed to the extent those Shares are replaced by other substantially
identical Shares within a period of 61 days beginning 30 days before and ending 30 days after the date of disposition of the Shares (whether
through the reinvestment of distributions, which could occur, for example, if the Stockholder is a participant in the Plan or otherwise).
In that event, the basis of the replacement Shares will be adjusted to