Company: TACOW
Filing Date: 2025-04-15
Form Type: S-1/A
Source: 0001829126-25-002650
Chunk: 278

Company: Berto Acquisition Corp.
Filing Date: 2025-04-15
Form: S-1/A
Chunk 278
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 in which case any gain on a sale or other taxable disposition of the
ordinary shares would be subject to short-term capital gain treatment and would be taxed at regular ordinary income tax rates. The deductibility
of capital losses is subject to certain limitations.

The amount of gain or loss recognized
by a U.S. Holder on a sale or other taxable disposition of ordinary shares or warrants generally will be equal to the difference between
(i) the sum of the amount of cash and the fair market value of any property received in such disposition (or, if the ordinary shares
or warrants are held as part of units at the time of the disposition, the portion of the amount realized on such disposition that is
allocated to the ordinary shares or warrants based upon the relative fair market values of the ordinary shares and warrants constituting
the units at the time of the disposition) and (ii) the U.S. Holder’s adjusted tax basis in its ordinary shares or warrants so disposed
of. A U.S. Holder’s adjusted tax basis in its ordinary shares or warrants generally will equal the U.S. Holder’s acquisition
cost (that is, the portion of the purchase price of a unit allocated to an ordinary share or one-half of one warrant, as described above
under “— Allocation of Purchase Price and Characterization of a Unit”) reduced, in the case of an ordinary share,
by the amount of any prior distributions with respect to such ordinary share that are treated as a return of capital. See “—
Exercise, Lapse or Redemption of a Warrant” below for a discussion regarding a U.S. Holder’s tax basis in the ordinary
share acquired pursuant to the exercise of a warrant.

Redemption of Ordinary Shares

Subject to the PFIC rules discussed
below, in the event that a U.S. Holder’s ordinary shares are redeemed pursuant to the redemption provisions described in the section
of this prospectus entitled “Description of Securities — Ordinary Shares” or if we purchase a U.S. Holder’s
ordinary shares in an open market transaction (for the remainder of this discussion, references to a “redemption” shall include
such an open market purchase of public shares by us), the treatment of the transaction for United States federal income tax purposes
will depend on whether the redemption qualifies as a sale of the ordinary shares under Section 302 of the Code. If the redemption
qualifies as a sale of ordinary shares, then the U.S. Holder will be treated for United States federal income tax purposes as described
under “— Gain