Company: CLM
Filing Date: 2025-04-21
Form Type: 424B3
Source: 0001398344-25-007380
Chunk: 71

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-21
Form: 424B3
Chunk 71
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 more than 50% of the value of the Fund’s net 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 IRS that will enable
Stockholders, 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 Stockholders and each Stockholder (1) would be required to include
in gross income, and treat as paid by such Stockholder, a proportionate share of those taxes, (2) would be required to treat such share
of those taxes and of any dividend paid by the Fund that represents income from foreign or U.S. possessions sources as such stockholder’s
own income from those sources, and, if certain conditions are met, (3) could either deduct such Stockholder’s proportionate share
of the foreign taxes deemed paid in computing taxable income or, alternatively, use the foregoing information in calculating the foreign
tax credit against such Stockholder’s federal income tax liability. The Fund will report to Stockholders shortly after each taxable
year their respective shares of foreign taxes paid and the income from sources within, and taxes paid to, foreign countries and U.S.
possessions if it makes this election.

The Fund will 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