Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 355

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 355
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, decreased
by the amount of cash received (excluding cash attributable to a fractional share) and increased by the amount of gain recognized on the
redemption.

If we elect to pay the entire
redemption price in cash, such redemption of our Series B Redeemable Preferred Stock will be treated under Section 302 of the
Code as a distribution that is taxable as dividend income (to the extent of our current or accumulated earnings and profits), unless the
redemption satisfies certain tests set forth in Section 302(b) of the Code enabling the redemption to be treated as sale of
our Series B Redeemable Preferred Stock (in which case the redemption will be treated in the same manner as a sale described above
in “— Dispositions of Series B Redeemable Preferred Stock”). The redemption will satisfy such tests if it (i) is
“substantially disproportionate” with respect to the holder’s interest in our stock, (ii) results in a “complete
termination” of the holder’s interest in all our classes of stock, or (iii) is “not essentially equivalent to a
dividend” with respect to the holder, all within the meaning of Section 302(b) of the Code. In determining whether any
of these tests have been met, stock considered to be owned by the holder by reason of certain constructive ownership rules set forth
in the Code, as well as stock actually owned, generally must be taken into account. Because the determination as to whether any of the
three alternative tests of Section 302(b) of the Code described above will be satisfied with respect to any particular holder
of our Series B Redeemable Preferred Stock depends upon the facts and circumstances at the time that the determination must be made,
prospective investors are advised to consult their tax advisors to determine such tax treatment. If a cash redemption of our Series B
Redeemable Preferred Stock does not meet any of the three tests described above, the redemption proceeds will be treated as a distribution,
as described above under “—Distributions on Our Series B Redeemable Preferred Stock.”

Stockholders should consult
with their tax advisors regarding the taxation of any particular redemption of our Series B Redeemable Preferred Stock.

Capital Gains and Losses.
A taxpayer generally must hold a capital asset for more than one year for gain or loss derived from its sale or exchange to be treated
as long-term capital gain or loss. The highest marginal U.S. federal individual income tax rate currently is 37%. The maximum