Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 115

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 115
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 property, or (3) if the recipient elects to have the dividend
treated as investment income for purposes of the limitation on deductibility of investment interest. Distributions of income by the Fund,
other than qualified dividend income and capital gains dividends, are taxed as ordinary income, at rates currently up to 37% for taxpayers
other than corporations.

We cannot assure you as to what percentage of the
dividends paid on the shares will consist of qualified dividend income or long-term capital gains, both of which are taxed at lower rates
for individuals than are ordinary income and short-term capital gains.

Dividends received by the Fund from REITs generally
are not expected to qualify for treatment as qualified dividend income. However, to the extent the Fund invests in REITs, the Fund may
designate dividends it pays to its Stockholders as “Section 199A dividends” so that individual and non-corporate Stockholders
may be eligible for a 20% deduction with respect to such dividends, provided such Stockholders have satisfied the holding period requirement
for the Fund’s Shares and certain other conditions. The amount of Section 199A dividends that the Fund may pay and report to its
Stockholders is limited to the excess of the ordinary REIT dividends, other than capital gain dividends and portions of REIT dividends
designated as qualified dividend income that the Fund receives from REITs for a taxable year over the Fund’s expenses allocable
to such dividends.

Dividends and interest received, and gains realized,
by the Fund on foreign securities may be subject to income, withholding or other taxes imposed by foreign countries and U.S. possessions
(collectively “foreign taxes”) that would reduce the return on its securities. Tax conventions between certain countries
and the United States, however, may reduce or eliminate foreign taxes, and many foreign countries do not impose taxes on capital gains
in respect of investments by foreign investors. If more than 50% of the value of the Fund’s total assets at the close of its taxable
year consists of securities of foreign corporations, it will be eligible to, and may, file an election with the Internal Revenue Service
(the “IRS”) that will enable its U.S. Holders, in effect, to receive the benefit of the foreign tax credit with respect to
any foreign taxes paid by the Fund. Pursuant to the election, the Fund would treat those taxes as dividends paid to its U.S. Holders
and each U.S. Holder