Company: NXDT
Filing Date: 2025-04-11
Form Type: S-4
Source: 0001437749-25-011826
Chunk: 189

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-11
Form: S-4
Chunk 189
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 on a non-U.S. stockholder’s behalf if such persons fail to comply with certain information reporting requirements. Payments of dividends that a non-U.S. stockholder receives in respect of New Stock could be affected by this withholding if such non-U.S. stockholder is subject to the FATCA information reporting requirements and fails to comply with them or if such non-U.S. stockholder holds shares of New Stock through a non-U.S. person (e.g., a foreign bank or broker) that fails to comply with these requirements (even if payments to such non-U.S. stockholders would not otherwise have been subject to FATCA Withholding). 30% withholding under FATCA was scheduled to apply to payments of gross proceeds from the sale or other disposition of property that produces U.S.-source dividends beginning on January 1, 2019, but on December 13, 2018, the IRS released proposed Treasury regulations (which can currently be relied upon) that, if finalized in their proposed form, would eliminate the obligation to withhold on gross proceeds. Non-U.S. stockholders should consult their own tax advisors regarding the relevant U.S. law and other official guidance on FATCA Withholding.

Other Tax Considerations

State, Local and Foreign Taxes. State, local or foreign taxation may apply to New NXDT and its stockholders in various state or local jurisdictions, including those in which New NXDT or its stockholders transact business or reside. The state, local and foreign tax treatment of New NXDT and its stockholders may not conform to the U.S. federal income tax consequences discussed above. Consequently, stockholders should consult their own tax advisors regarding the effect of state, local and foreign tax laws on an investment in New NXDT.

Legislative Proposals. You should recognize that our and your present U.S. federal income tax treatment may be modified by legislative, judicial or administrative actions at any time, which may be retroactive in effect. The rules dealing with U.S. federal income taxation are constantly under review by Congress, the IRS and the Treasury Department, and statutory changes as well as promulgation of new regulations, revisions to existing statutes and revised interpretations of established concepts occur frequently. We are not aware of any pending legislation that would materially affect our or your taxation as described in this prospectus. You should, however, consult your advisors concerning the status of legislative proposals that may pertain to the ownership and disposition of shares of New Stock.

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DESCRIPTION OF NEW NXDT