Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 74

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 74
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, other than
qualified dividends and capital gain dividends, will be fully taxable at ordinary income tax rates unless further legislative action
is taken. While certain income distributions to Stockholders may qualify as qualified dividends, the Fund’s seeks to provide dividends
regardless of whether they so qualify. As additional special rules apply to determine whether a distribution will be a qualified dividend,
investors should consult their tax advisors. Investors should also see the Fund’s Statement of Additional Information under the
heading “Certain Material United States Federal Income Tax Consequences” for more information relating to qualified dividends.

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Dividends received by the Fund from REITs generally
are not expected to qualify for treatment as qualified dividend income. However, to the extent the Fund invests in REITs, the Fund may
designate dividends it pays to its Stockholders as “Section 199A dividends” so that individual and non-corporate Stockholders
may be eligible for a 20% deduction with respect to such dividends, provided such Stockholders have satisfied the holding period requirement
for the Fund’s Shares and certain other conditions. The amount of Section 199A dividends that the Fund may pay and report to its
Stockholders is limited to the excess of the ordinary REIT dividends, other than capital gain dividends and portions of REIT dividends
designated as qualified dividend income that the Fund receives from REITs for a taxable year over the Fund’s expenses allocable
to such dividends.

Dividends and interest received, and gains realized,
by the Fund on foreign securities may be subject to income, withholding or other taxes imposed by foreign countries and U.S. possessions
(collectively “foreign taxes”) that would reduce the return on its securities. Tax conventions between certain countries
and the United States, however, may reduce or eliminate foreign taxes, and many foreign countries do not impose taxes on capital gains
in respect of investments by foreign investors. If more than 50% of the value of the Fund’s net assets at the close of its taxable
year consists of securities of foreign corporations, it will be eligible to, and may, file an election with the IRS that will enable
Stockholders, in effect, to receive the benefit of the foreign tax credit with respect to any foreign taxes paid by the Fund. Pursuant
to the election, the Fund would treat those taxes as dividends paid to Stockholders and each Stockholder (1) would be required to include
in gross income, and treat as paid by such Stockholder