Company: SQFTP
Filing Date: 2025-07-15
Form Type: 424B5
Source: 0001641172-25-019665
Chunk: 68

Company: Presidio Property Trust, Inc.
Filing Date: 2025-07-15
Form: 424B5
Chunk 68
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 determined as of the date on which we acquired the asset, and we subsequently 
 recognize gain on the disposition of the asset during a period that is generally five years beginning on the date on which we acquired      
 the asset, then we generally will be required to pay tax at the highest regular corporate tax rate on this gain to the extent of            
 the excess of (1) the fair market value of the asset over (2) our adjusted tax basis in the asset, in each case determined as of            
 the date on which we acquired the asset. The results described in this paragraph with respect to the recognition of gain assume that        
 the C corporation will refrain from making an election to receive different treatment under applicable Treasury Regulations on its          
 tax return for the year in which we acquire the asset from the C corporation. Under applicable Treasury Regulations, any gain from          
 the sale of property we acquired in an exchange under Section 1031 (a like-kind exchange) or Section 1033 (an involuntary conversion)       
 of the Code generally is excluded from the application of this built-in gains tax.                                                          |
| ● | Ninth,                                                                                                                                      
 we will be required to pay a 100% tax on any “redetermined rents,” “redetermined deductions,” “excess                                       
 interest” or “redetermined TRS service income,” as described below under “— Penalty Tax.” In                                                
 general, redetermined rents are rents from real property that are overstated as a result of services furnished to any of our tenants        
 by a taxable REIT subsidiary of ours. Redetermined deductions and excess interest generally represent amounts that are deducted by          
 a taxable REIT subsidiary of ours for amounts paid to us that are in excess of the amounts that would have been deducted based on           
 arm’s length negotiations. Redetermined TRS service income generally represents income of a taxable REIT subsidiary that is                 
 understated as a result of services provided to us or on our behalf.                                                                        |
| ● | Tenth,                                                                                                                                      
 we may elect to retain and pay income tax on our net capital gain. In that case, a stockholder would include its proportionate share        
 of our undistributed net capital gain (to the extent we make a timely designation of such gain to the stockholder) in its income,           
 would be deemed to have paid the tax that we paid on such gain, and would be allowed a credit for its proportionate share of the            
 tax deemed to have been paid, and an adjustment would be made to increase the tax basis of the stockholder in our capital