Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 364

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 364
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 current and accumulated earnings and profits.

For any year in which we qualify
as a REIT, a non-U.S. stockholder may incur tax on distributions that are attributable to gain from our sale or exchange of a USRPI under
FIRPTA. A USRPI includes certain interests in real property, and shares in corporations at least 50% of whose assets consist of interests
in real property. Under FIRPTA, subject to the exceptions discussed below for (1) distributions on a class of stock that is regularly
traded on an established securities market to a less-than-10% holder of such stock and (2) distributions to “qualified shareholders”
and “qualified foreign pension funds,” a non-U.S. stockholder is taxed on distributions attributable to gain from sales of
USRPIs as if such gain were effectively connected with a U.S. business of the non-U.S. stockholder. A non-U.S. stockholder thus would
be taxed on such a distribution at the normal U.S. federal capital gains rates applicable to U.S. stockholders, subject to applicable
alternative minimum tax and a special alternative minimum tax in the case of a nonresident alien individual. A corporate non-U.S. stockholder
not entitled to treaty relief or exemption also may be subject to the 30% branch profits tax on such a distribution. Unless the exception
described in the next paragraph applies, we must withhold 21% of any distribution that we could designate as a capital gain dividend.
A non-U.S. stockholder may receive a credit against its tax liability for the amount we withhold.

However, if our Series B
Redeemable Preferred Stock is regularly traded on an established securities market in the United States, capital gain distributions that
are attributable to our sale of on such class of our capital stock that are attributable to our sale of a USRPI will be treated as ordinary
dividends rather than as gain from the sale of a USRPI, as long as the non-U.S. stockholder did not own more than 10% of the applicable
class of our capital stock at any time during the one-year period preceding the distribution or the non-U.S. stockholder was treated as
a “qualified shareholder” and “qualified foreign pension fund.” In such a case, non-U.S. stockholders generally
will be subject to withholding tax on such capital gain distributions in the same manner as they are subject to withholding tax on ordinary
dividends. Our