Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 346

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 346
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 treated as a USRPI capital gain to such non-U.S. stockholder, then such non-U.S. stockholder will be treated
as having USRPI capital gain in an amount that, but for the disposition, would have been treated as USRPI capital gain.

Although the law is not clear
on the matter, it appears that amounts we designate as retained capital gains in respect of our capital stock held by U.S. stockholders
generally should be treated with respect to non-U.S. stockholders in the same manner as actual distributions by us of capital gain dividends.
Under this approach, a non-U.S. stockholder would be able to offset as a credit against its U.S. federal income tax liability resulting
from its proportionate share of the tax paid by us on such retained capital gains, and to receive from the IRS a refund to the extent
of the non-U.S. stockholder’s proportionate share of such tax paid by us exceeds its actual U.S. federal income tax liability, provided
that the non-U.S. stockholder furnishes required information to the IRS on a timely basis.

Qualified Shareholders. Subject to the exception discussed below, any distribution to a “qualified shareholder”
who holds our capital stock directly or indirectly (through one or more partnerships) will not be subject to U.S. federal income tax as
income effectively connected with a U.S. trade or business and thus will not be subject to FIRPTA withholding as described above. However,
while a “qualified shareholder” will not be subject to FIRPTA withholding on our distributions, non-United States persons
who hold interests in the “qualified shareholder” (other than interests solely as a creditor) and hold more than 10% of our
capital stock, either through the “qualified shareholder” or otherwise, will still be subject to FIRPTA withholding. REIT
distributions received by a “qualified shareholder” that are exempt from FIRPTA withholding may still be subject to regular
U.S. federal withholding tax.

A “qualified shareholder”
is a foreign person that (1) is either eligible for the benefits of a comprehensive income tax treaty that includes an exchange of
information program and whose principal class of interests is listed and regularly traded on one or more recognized stock exchanges (as
defined in such comprehensive income tax treaty), or is a foreign partnership that is created or organized under foreign law as a limited
partnership in a jurisdiction that has an agreement for the exchange of information with respect to taxes