Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 103

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 103
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 holders, we may be required to withhold U.S. federal income tax with respect to such dividends, including
in respect of all or a portion of such dividend that is payable in our stock. If, in any taxable dividend payable in cash and stock, a
significant number of our stockholders determine to sell shares of our stock in order to pay taxes owed on dividends, it may be viewed
as economically equivalent to a dividend reduction and put downward pressure on the market price of our common stock.

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Distributions payable by REITs do not qualify for the reduced tax rates that apply to other corporate distributions.

The maximum U.S. federal income
tax rate applicable to income from “qualified dividends” payable to U.S. stockholders that are individuals, trusts and estates
is currently 20%, plus a 3.8% “Medicare tax” surcharge. Dividends payable by REITs, however, generally are not eligible for
the reduced rates on qualified dividend income. However, for taxable years beginning before January 1, 2026, ordinary REIT dividends
constitute “qualified business income,” and thus a 20% deduction is available to individual taxpayers with respect to such
dividends, resulting in a 29.6% maximum U.S. federal income tax rate (plus the 3.8% surtax on net investment income, if applicable) for
individual U.S. stockholders. However, to qualify for this deduction, the stockholder receiving such dividends must hold the dividend-paying
REIT stock for at least 46 days (considering certain special holding period rules) of the 91-day period beginning 45 days before the stock
becomes ex-dividend, and cannot be under an obligation to make related payments with respect to a position in substantially similar or
related property. The more-favorable rates applicable to regular corporate distributions could cause investors who are individuals to
perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay distributions,
which could adversely affect the value of our common stock. See “Material U.S. Federal Income Tax Considerations—Taxation
of Taxable U.S. Stockholders.”

We may enter into certain hedging transactions that may have a potential impact on our REIT qualification.

From time to time, we may
enter into hedging transactions with respect to one or more of our assets or liabilities. Our hedging activities