Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 78

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 78
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 reflect the disallowed loss.

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An investor should be aware that, if Shares are purchased
shortly before the record date for any taxable dividend (including a capital gain dividend), the purchase price likely will reflect the
value of the dividend and the investor then would receive a taxable distribution likely to reduce the trading value of such Shares, in
effect resulting in a taxable return of some of the purchase price. Taxable distributions to individuals and certain other non-corporate
Stockholders, including those who have not provided their correct taxpayer identification number and other required certifications, may
be subject to “backup” federal income tax withholding currently equal to 24%.

An investor should also be aware that the benefits
of the reduced tax rate applicable to long-term capital gains and qualified dividend income may be impacted by the application of the
alternative minimum tax to individual stockholders.

If the Fund utilizes leverage through borrowing,
it may be restricted by loan covenants with respect to the declaration of, and payment of, dividends in certain circumstances. Limits
on the Fund’s payments of dividends may prevent the Fund from meeting the distribution requirements, described above, and may,
therefore, jeopardize the Fund’s qualification for taxation as a RIC and possibly subject the Fund to the 4% excise tax. The Fund
will endeavor to avoid restrictions on its ability to make dividend payments.

Information Reporting

Section 6045B of the Code generally imposes certain
reporting requirements on the Fund with respect to any organizational action that affects the tax basis of the Shares for U.S. federal
income tax purposes. The Fund has historically made return of capital distributions (“ROC Distributions”) to certain Stockholders
and, to the extent such payments continue, the Fund will generally be required to file IRS Form 8937, Report of Organizational Actions
Affecting Basis of Securities (“Form 8937”), with the IRS and deliver an information statement to certain Stockholders, subject
to certain exceptions. Generally, the Fund must file Form 8937 with the IRS on or before the 45th day following the corporate action
or, if earlier, January 15 of the year following the calendar year of the corporate action. In addition, the Fund must furnish the same
information to certain Stockholders on or before January 15 of the year following the calendar year of the corporate action. However,
the Fund generally would not be required to file Form 8937 or furnish this information to Stockholders provided it posts the requisite
information