Company: EQS
Filing Date: 2025-05-12
Form Type: DEF 14A
Source: 0001712543-25-000028
Chunk: 60

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-05-12
Form: DEF 14A
Chunk 60
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, a “U.S.
holder” means a beneficial owner of our common stock that is, for U.S. federal income tax purposes:

| · | an individual who is a citizen or resident of the U.S.; |

| · | a corporation created or organized in or under the laws     
 of the U.S., any state thereof or the District of Columbia; |

| · | an estate the income of which is subject to U.S. federal 
 income taxation regardless of its source; or             |

| · | a trust if (1) it is subject to the primary supervision                                                                                
 of a court within the U.S. and one or more U.S. persons have the authority to control all substantial decisions of the trust or (2) it 
 has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.                              |

If an entity (or arrangement) classified as
a partnership for U.S. federal income tax purposes holds shares of our common stock, the tax treatment of a partner in the partnership
will generally depend upon the status of the partner and the activities of the partnership. If a holder of our common stock is a partner
of a partnership holding shares of our common stock, such holder should consult his or her own tax advisor.

This summary of certain U.S. federal income
tax consequences is for general information only and is not tax advice. Stockholders are urged to consult their own tax advisor with respect
to the application of U.S. federal income tax laws to their particular situation as well as any tax considerations arising under other
U.S. federal tax laws (such as the estate or gift tax laws) or under the laws of any state, local, foreign or other taxing jurisdiction
or under any applicable tax treaty.

The Reverse Stock Split is intended to be treated
as a recapitalization for U.S. federal income tax purposes. Assuming the Reverse Stock Split qualifies as a recapitalization, except as
described below with respect to cash received in lieu of a fractional share, a U.S. holder will not recognize any gain or loss for U.S.
federal income tax purposes upon the Reverse Stock Split. In the aggregate, a U.S. holder’s tax basis in the common stock received
pursuant to the Reverse Stock Split (excluding the portion of the tax basis that is allocable to any fractional share) will equal the
U.S. holder’s tax basis in its common stock surrendered in the Reverse Stock Split in exchange therefor,