Company: TACOW
Filing Date: 2025-03-21
Form Type: S-1
Source: 0001829126-25-001978
Chunk: 283

Company: Berto Acquisition Corp.
Filing Date: 2025-03-21
Form: S-1
Chunk 283
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 25% of the shares by value, is passive income (the “income
test”) or (ii) at least 50% of its assets in a taxable year (ordinarily determined based on fair market value and averaged quarterly
over the year), including its pro ratashare of the assets of any corporation in which it is considered to own at least 25% of
the shares by value, are held for the production of, or produce, passive income (the “asset test”). Passive income generally
includes, among other things, dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct
of a trade or business) and gains from the disposition of assets giving rise to passive income.

Because we are a blank check
company, with no current active business, we believe that it is likely that we will meet the asset test or income test for our current
taxable year. However, pursuant to a startup exception, a corporation will not be a PFIC for the first taxable year that the corporation
has gross income (the “startup year”), if (1) no predecessor of the corporation was a PFIC; (2) the corporation establishes
to the satisfaction of the IRS that it will not be a PFIC for either of the first two taxable years following the startup year; and (3)
the corporation is not in fact a PFIC for either of the first two taxable years following the startup year. The applicability of the
startup exception to us is uncertain and will not be known until after the close of our current taxable year and, perhaps, until after
the end of our two taxable years following our startup year. After the acquisition of a company or assets in a business combination,
we may still meet one of the PFIC tests depending on the timing of the acquisition and the amount of our passive income and assets as
well as the passive income and assets of the acquired business. If the company that we acquire in a business combination is a PFIC, then
we will likely not qualify for the startup exception and will be a PFIC for our current taxable year. Our actual PFIC status for our
current taxable year or any subsequent taxable year will not be determinable until after the end of such taxable year (and, if the startup
exception is applicable to our current taxable year, perhaps until after the end of our two taxable years following our current taxable
year). Accordingly, there can be no assurance with respect to our status as a PFIC for our