Company: GMRE
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001104659-25-112543
Chunk: 159

Company: Global Medical REIT Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 159
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 be long-term capital gain, except for any portion of such
gain that is treated as depreciation or cost recovery recapture. Under Section 704(c) of the Code, any gain or loss recognized by a Partnership
on the disposition of contributed properties will be allocated first to the partners of the Partnership who contributed such properties
to the extent of their Built-in Gain or Built-in Loss on those properties for U.S. federal income tax purposes. The partners’ Built-in
Gain or Built-in Loss on such contributed properties will equal the difference between the partners’ proportionate share of the
book value of those properties and the partners’ tax basis allocable to those properties at the time of the contribution as reduced
for any decrease in the Book-Tax Difference.” See “—Income Taxation of the Partnerships and their Partners—Tax
Allocations with Respect to Partnership Properties.” Any remaining gain or loss recognized by the Partnership on the disposition
of the contributed properties, and any gain or loss recognized by the Partnership on the disposition of the other properties, will be
allocated among the partners in accordance with their respective percentage interests in the Partnership.

Our share of any gain realized by a Partnership
on the sale of any property held by the Partnership as inventory or other property held primarily for sale to customers in the ordinary
course of the Partnership’s trade or business will be treated as income from a prohibited transaction that is subject to a 100%
penalty tax. Such prohibited transaction income may have an adverse effect upon our ability to satisfy the income tests for REIT status.
See “—Gross Income Tests.” We do not presently intend to acquire or hold or to allow any Partnership to acquire or hold
any property that represents inventory or other property held primarily for sale to customers in the ordinary course of our or such Partnership’s
trade or business.

Partnership Audit Rules

Under the rules applicable to U.S. federal income
tax audits of partnerships, any audit adjustment to items of income, gain, loss, deduction or credit of a partnership (and any partner’s
distributive share thereof) is determined, and taxes, interest or penalties attributable thereto are assessed and collected, at the partnership
level. The partnership itself may be liable for a hypothetical increase in partner-level taxes (including interest and penalties) resulting
from an adjustment of “partnership-related items” on the audit (the “imputed adjustment amount”), regardless of
changes in the composition of the partners (or their relative ownership) between the year under audit and