Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 349

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 349
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 REIT in which we own an equity interest, if any, will be qualifying income for purposes of both gross income
tests.

Fee Income.
Fee income generally will not be qualifying income for purposes of both the 75% and 95% gross income tests. Any fees earned by a TRS
will not be included for purposes of the gross income tests, but will be subject to U.S. federal corporate income tax, as described above.
In addition, we will be subject to a 100% excise tax on any fees earned by a TRS for services provided to us if such fees were pursuant
to an agreement determined by the IRS to be not on an arm’s-length basis.

Foreclosure Property.
We will be subject to tax at the maximum U.S. federal corporate income tax rate (currently 21%) on any income from foreclosure property,
which includes certain foreign currency gains and related deductions, other than income that otherwise would be qualifying income for
purposes of the 75% gross income test, less expenses directly connected with the production of that income. However, gross income from
foreclosure property will qualify under the 75% and 95% gross income tests. Gain from the sale of foreclosure property is not subject
to the 100% tax on prohibited transactions, as described below.

Foreclosure property is any
real property, including interests in real property, and any personal property incident to such real property:

| · | that is acquired by a REIT                                                                                                                 
 as the result of the REIT having bid on such property at foreclosure, or having otherwise reduced such property to ownership or possession 
 by agreement or process of law, after there was a default or when default was imminent on a lease of such property or on indebtedness      
 that such property secured;                                                                                                                |

| · | for which the related loan                                                               
 was acquired by the REIT at a time when the default was not imminent or anticipated; and |

| · | for which the REIT makes                                         
 a proper election to treat the property as foreclosure property. |

A REIT will not be considered
to have foreclosed on a property where the REIT takes control of the property as a mortgagee-in-possession and cannot receive any profit
or sustain any loss except as a creditor of the mortgagor. Property generally ceases to be foreclosure property at the end of the third
taxable year (or, with respect to qualified healthcare property, the second taxable year) following the taxable year in which the RE