Company: GMRE
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001104659-25-112543
Chunk: 144

Company: Global Medical REIT Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 144
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, then such portion will be allocated to all shares of the redeemed class of stock
held by the redeemed stockholder just before the redemption on a pro-rata, share-by-share, basis. The amount applied to each share will
first reduce the redeemed U.S. stockholder’s basis in that share and any excess after the basis is reduced to zero will result in
taxable gain. If the redeemed stockholder has different bases in its stock, then the amount allocated could reduce some of the basis in
certain shares while reducing all the basis and giving rise to taxable gain in others. Thus, the redeemed U.S. stockholder could have
gain even if such U.S. stockholder’s basis in all its stock of the redeemed class exceeded such portion.

The previously proposed Treasury regulations would
permit the transfer of basis in the redeemed preferred stock to the redeemed U.S. stockholder’s remaining, unredeemed preferred
stock of the same class (if any), but not to any other class of stock held (directly or indirectly) by the redeemed U.S. stockholder.
Instead, any unrecovered basis in the redeemed preferred stock would be treated as a deferred loss to be recognized when certain conditions
are satisfied. On March 28, 2019, these proposed regulations were withdrawn. As a result, the treatment governing adjustments to the basis
of a U.S. holder’s preferred stock with respect to amounts treated as a distribution with respect to preferred stock, but not as
a dividend, as well as the treatment of the basis of any unredeemed shares, may be less certain.

Capital Gains and Losses

A taxpayer generally must hold a capital asset
for more than one year for gain or loss derived from its sale or exchange to be treated as long-term capital gain or loss. The highest
marginal individual U.S. federal income tax rate currently is 37%. The maximum U.S. federal income tax rate on long-term capital gain
applicable to taxpayers taxed at individual rates is 20% for sales and exchanges of assets held for more than one year. The maximum U.S.
federal income tax rate on long-term capital gain from the sale or exchange of “Section 1250 property,” or depreciable real
property, is 25%, which applies to the lesser of the total amount of the gain or the accumulated depreciation on the Section 1250 property.

Individuals, trusts and estates whose income exceeds
certain thresholds are also subject to an additional 3