Company: SQFTP
Filing Date: 2025-07-15
Form Type: 424B5
Source: 0001641172-25-019665
Chunk: 92

Company: Presidio Property Trust, Inc.
Filing Date: 2025-07-15
Form: 424B5
Chunk 92
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 gain amount which would have resulted if those undistributed long-term capital gains had been distributed as “capital gain dividends” by us to our stockholders.

Retention of Net Capital Gains.

We may elect to retain, rather than distribute as a capital gain dividend, all or a portion of our net capital gains. If we make this election, we would pay tax on our retained net capital gains. In addition, to the extent we so elect, our earnings and profits (determined for U.S. federal income tax purposes) would be adjusted accordingly, and a U.S. holder generally would:

| ● | include                                                                                                                          
 its pro rata share of our undistributed net capital gains in computing its long-term capital gains in its return for its taxable 
 year in which the last day of our taxable year falls, subject to certain limitations as to the amount that is includable;        |
| ● | be                                                                                                                               
 deemed to have paid its share of the capital gains tax imposed on us on the designated amounts included in the U.S. holder’s     
 income as long-term capital gain;                                                                                                |
| ● | receive                                                                                                                          
 a credit or refund for the amount of tax deemed paid by it;                                                                      |
| ● | increase                                                                                                                         
 the adjusted tax basis of its capital stock by the difference between the amount of includable gains and the tax deemed to       
 have been paid by it; and                                                                                                        |
| ● | in                                                                                                                               
 the case of a U.S. holder that is a corporation, appropriately adjust its earnings and profits for the retained capital gains in 
 accordance with Treasury Regulations to be promulgated by the IRS.                                                               |

Passive Activity Losses and Investment Interest Limitations.

Distributions we make and gain arising from the sale or exchange by a U.S. holder of our capital stock will not be treated as passive activity income. As a result, U.S. holders generally will not be able to apply any “passive losses” against this income or gain. A U.S. holder generally may elect to treat capital gain dividends, capital gains from the disposition of our capital stock and income designated as qualified dividend income, as described in “— Tax Rates” below, as investment income for purposes of computing the investment interest limitation, but in such case, the holder will be taxed at ordinary income rates on such amount. Other distributions made by us, to the extent they do not constitute a return of capital, generally will be treated as investment income for purposes of computing the investment interest limitation.

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