Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 384

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 384
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 partnership’s taxable
year. In determining the number of partners in a partnership, a person owning an interest in a partnership, grantor trust or S corporation
that owns an interest in the partnership is treated as a partner in such partnership only if (1) substantially all of the value
of the owner’s interest in the entity is attributable to the entity’s direct or indirect interest in the partnership and
(2) a principal purpose of the use of the entity is to permit the partnership to satisfy the 100-partner limitation. We believe
that our Operating Partnership and any other Partnership in which we own an interest will qualify for the private placement exception.

We have not requested, and
do not intend to request, a ruling from the IRS that our Operating Partnership will be classified as a partnership for U.S. federal income
tax purposes. If for any reason our Operating Partnership were taxable as a corporation, rather than as a partnership, for U.S. federal
income tax purposes, we likely would not be able to qualify as a REIT unless we qualified for certain relief provisions. See “—Gross
Income Tests” and “—Asset Tests.” In addition, any change in a Partnership’s status for tax purposes might
be treated as a taxable event, in which case we might incur tax liability without any related cash distribution. Further, items of income
and deduction of such Partnership would not pass through to its partners, and its partners would be treated as stockholders for tax purposes.
Consequently, such Partnership would be required to pay tax at U.S. federal corporate income tax rates on its net income, and distributions
to its partners would constitute dividends that would not be deductible in computing such Partnership’s taxable income.

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Income Taxation of the Partnerships and their Partners

Partners, Not the Partnerships, Subject to Tax. A partnership is generally not a taxable entity for U.S. federal income tax purposes. Rather, we are required
to take into account our allocable share of each Partnership’s income, gains, losses, deductions and credits for any taxable year
of such Partnership ending within or with our taxable year, without regard to whether we have received or will receive any distribution
from such Partnership. However, as discussed below, the tax liability for adjustments to a partnership’s tax returns made as a
result of an audit by the IRS will be imposed on the partnership itself in certain circumstances absent an election to the contrary (if
available).

Partnership Allocations