Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 368

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 368
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 for an exemption from, or reduction of, U.S. withholding taxes with respect to such dividends will be required to seek a refund
from the IRS to obtain the benefit of such exemption or reduction. We will not pay any additional amounts in respect of any amounts withheld.

Dispositions.
Subject to the discussion below regarding dispositions by “qualified shareholders” and “qualified foreign pension funds,”
non-U.S. stockholders could incur tax under FIRPTA with respect to gain realized upon a disposition of our Series B Redeemable Preferred
Stock if we are a United States real property holding corporation, or USRPHC, during a specified testing period. If at least 50% of a
REIT’s assets are USRPIs, then the REIT will be a USRPHC. We anticipate that we will be a USRPHC based on our investment strategy.
However, even if we are a USRPHC, a non-U.S. stockholder generally would not incur tax under FIRPTA on gain from the sale of our Series B
Redeemable Preferred Stock if we are a “domestically controlled qualified investment entity.”

A “domestically controlled
qualified investment entity” includes a REIT in which, at all times during a specified testing period, less than 50% in value of
its shares are held directly or indirectly by non-U.S. stockholders. We cannot assure that this test has been or will be met. Further,
final Treasury regulations that are effective as of April 25, 2024 (the “Final Regulations”) modify prior tax guidance
relating to the manner in which we determine whether we are a domestically controlled qualified investment entity. The Final Regulations
provide a look-through rule for our shareholders that are non-publicly traded partnerships, non-public REITs, non-public regulated
investment companies, or non-public domestic C corporations owned more than 50% directly or indirectly by foreign persons (“foreign-controlled
domestic corporations”) and treat “qualified foreign pension funds” as foreign persons. The look-through rule in
the Final Regulations applicable to foreign-controlled domestic corporations will not apply to a REIT for a period of up to ten years
if it is able to satisfy certain requirements, including not undergoing a significant change in its ownership and not acquiring a significant
amount of new USRPIs, in each case since April 24, 2024, the date the Final Regulations were issued. If a REIT fails to satisfy such
requirements