Company: EQS
Filing Date: 2025-04-23
Form Type: PRE 14A
Source: 0001712543-25-000025
Chunk: 59

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-23
Form: PRE 14A
Chunk 59
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 the status of the partner and the activities of the partnership. If a holder of our common stock is a partner
of a partnership holding shares of our common stock, such holder should consult his or her own tax advisor.

This summary of certain U.S. federal income
tax consequences is for general information only and is not tax advice. Stockholders are urged to consult their own tax advisor with respect
to the application of U.S. federal income tax laws to their particular situation as well as any tax considerations arising under other
U.S. federal tax laws (such as the estate or gift tax laws) or under the laws of any state, local, foreign or other taxing jurisdiction
or under any applicable tax treaty.

The Reverse Stock Split is intended to be treated
as a recapitalization for U.S. federal income tax purposes. Assuming the Reverse Stock Split qualifies as a recapitalization, except as
described below with respect to cash received in lieu of a fractional share, a U.S. holder will not recognize any gain or loss for U.S.
federal income tax purposes upon the Reverse Stock Split. In the aggregate, a U.S. holder’s tax basis in the common stock received
pursuant to the Reverse Stock Split (excluding the portion of the tax basis that is allocable to any fractional share) will equal the
U.S. holder’s tax basis in its common stock surrendered in the Reverse Stock Split in exchange therefor, and the holding period
of the U.S. holder’s common stock received pursuant to the Reverse Stock Split will include the holding period of the common stock
surrendered in the Reverse Stock Split in exchange therefor.

In general, a U.S. holder who receives a cash
payment in lieu of a fractional share will recognize capital gain or loss equal to the difference between the amount of cash received
in lieu of the fractional share and the portion of the U.S. holder’s tax basis of the common stock surrendered in the Reverse Stock
Split that is allocable to the fractional share. Such gain or loss generally will be long-term capital gain or loss if the U.S. holder’s
holding period in its common stock surrendered in the Reverse Stock Split is more than one year as of the date of the Reverse Stock Split.
The deductibility of net capital losses by individuals and corporations is subject to limitations. Depending on a stockholder’s
individual facts and circumstances, it is possible that cash received in lieu of a fractional share could be treated as a distribution
under Section