Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 72

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 72
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ation as a Regulated Investment Company

The Fund intends to elect to be treated and to qualify
each year for taxation as a regulated investment company (a “RIC”) under Subchapter M of the Code. In order for the Fund
to qualify as a RIC, it must, among other requirements, meet income and asset diversification tests each year. If the Fund so qualifies
and satisfies certain distribution requirements, the Fund (but not its Stockholders) will not be subject to federal income tax to the
extent it distributes its investment company taxable income and net capital gains (the excess of net long-term capital gains over net
short-term capital loss) in a timely manner to its Stockholders in the form of dividends or capital gain distributions. The Code imposes
a 4% nondeductible excise tax on RICs, such as the Fund, to the extent they do not meet certain distribution requirements by the end
of each calendar year. The Fund anticipates meeting these distribution requirements.

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The Fund intends to make monthly distributions of
investment company taxable income after payment of the Fund’s operating expenses. Unless a Stockholder is ineligible to participate
or elects otherwise, all distributions will be automatically reinvested in additional Shares pursuant to the Fund’s dividend reinvestment
plan (the “Plan”). For U.S. federal income tax purposes, all dividends are generally taxable whether a Stockholder takes
them in cash or they are reinvested pursuant to the Plan in additional Shares. Distributions of the Fund’s investment company taxable
income (including short-term capital gains) will generally be treated as ordinary income to the extent of the Fund’s current and
accumulated earnings and profits. Distributions of the Fund’s net capital gains (“capital gain dividends”), if any,
are taxable to Stockholders as long-term capital gains, regardless of the length of time Shares have been held by Stockholders. Distributions,
if any, in excess of the Fund’s earnings and profits will first reduce the adjusted tax basis of a holder’s Shares and, after
that basis has been reduced to zero, will constitute capital gains to the Stockholder (assuming the Shares are held as a capital asset).
See below for a summary of the maximum tax rates applicable to capital gains (including capital gain dividends). A corporation that owns
Shares generally will not be entitled to the dividends received deduction with respect to all of the dividends it receives from the Fund.
Fund dividend payments that are attributable to qualifying dividends received by the Fund from certain domestic