Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 27

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 27
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 irrevocable and effective with respect to all Rights received by a Record Date Stockholder. A Section 307(b)(2) Election is made by
attaching a statement to the Record Date Stockholder’s federal income tax return for the taxable year of the Record Date (which
is the same as the year as when the Rights were received). A Record Date Stockholder must retain a copy of the Section 307(b)(2) Election
and the tax return with which the Section 307(b)(2) Election was filed in order to substantiate the use of an allocated basis upon subsequent
disposition of the New Shares. Record Date Stockholders should carefully review the differing federal income tax consequences described
below before deciding whether or not to make a Section 307(b)(2) Election.

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For Record Date Stockholders When the Fair Market Value of Rights Distributed Equals or Exceeds 15% of the Total Fair Market Value of the Fund’s Shares or When Making a 307(b)(2) Election:

Lapse of Rights.If the fair market value
of rights distributed equals or exceeds 15% of the total fair market value of the Shares or if a Record Date Stockholder makes a Section
307(b)(2) Election, no taxable loss will be realized for federal income tax purposes if the Record Date Stockholder retains a Right but
allows it to lapse without exercise. Moreover, the existing federal income tax basis of the related Old Share will not be reduced if
such lapse occurs (i.e., upon the lapse of any Right received pursuant to this Offering, any portion of the Record Date Stockholder’s
U.S. federal income tax basis in such Record Date Stockholder’s Old Share that would have been allocated to such Right if such
Right had been sold or exercised rather than allowed to lapse shall continue to be included in the Record Date Stockholder’s U.S.
federal income tax basis in such Record Date Stockholder’s Old Share).

Exercise of Rights.If a Record Date Stockholder
exercises a Right, the Record Date Stockholder’s existing federal income tax basis in the related Old Share must be allocated between
such Right and the Old Share in proportion to their respective fair market values as of the date of distribution of such Rights (effectively
reducing the Record Date Stockholder’s basis in their Old Share). Upon such exercise of the Record Date Stockholder’s Rights,
the New Shares received by the Record Date Stockholder pursuant to such exercise will have a federal income tax basis