Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 356

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 356
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 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. Although a partnership agreement generally will determine the allocation of income and losses among
partners, such allocations will be disregarded for tax purposes if they do not comply with the provisions of the U.S. federal income tax
laws governing partnership allocations. If an allocation is not recognized for U.S. federal income tax purposes, the item subject to the
allocation will be reallocated in accordance with the partners’ interests in the partnership, which will be determined by taking
into account all of the facts and circumstances relating to the economic arrangement of the partners with respect to such item. Each Partnership’s
allocations of taxable income, gain and loss are intended to comply with the requirements of the U.S. federal income tax laws governing
partnership allocations.

Tax Al