Company: WFC-PC
Filing Date: 2025-08-26
Form Type: S-3/A
Source: 0001193125-25-188722
Chunk: 206

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-26
Form: S-3/A
Chunk 206
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 determining whether a dividend paid on common or preferred stock is an extraordinary dividend, a corporate U.S. Holder may elect to
substitute the fair market value of the common or preferred stock for its tax basis for purposes of applying these tests if the fair market value as of the day before the ex-dividend date is established to the
satisfaction of the Secretary of the Treasury. An extraordinary dividend also includes any amount treated as a dividend in the case of a redemption that is either non-pro rata as to all stockholders or in
partial liquidation of the corporation, regardless of the stockholder’s holding period and regardless of the size of the dividend. Prospective investors in common or preferred stock should consult their own tax advisors with respect to the
potential application of the “extraordinary dividend” rules to an investment in the common or preferred stock.

Sale or Other Taxable Dispositions of Common or Preferred Stock. In general, a U.S. Holder will recognize capital gain or loss upon the sale or other taxable disposition of common or preferred stock in an amount equal to the difference between the sum
of the fair market value of any property received and the amount of cash received in such disposition and such U.S. Holder’s adjusted tax basis in the common or preferred stock at the time of the disposition. A U.S. Holder’s tax basis in
the common or preferred stock generally will be equal to the cost of the common or preferred stock to such U.S. Holder, which may be adjusted for certain subsequent events (for example, if the U.S. Holder receives a nondividend distribution). Any
such capital gain will be long-term capital gain if the common or preferred stock has been held by the U.S. Holder for more than one year. Under current U.S. federal income tax law, certain non-corporate U.S.
Holders (including individuals) are eligible for preferential rates of U.S. federal income tax on long-term capital gains. The ability to utilize capital losses is subject to limitations under the Code.

Redemptions of Common Stock or Preferred Stock. A redemption of shares of common or preferred stock generally will be treated under
Section 302 of the Code as a distribution unless the redemption satisfies one

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of the tests set forth in Section 302(b) of the Code and, therefore, treated as a sale or exchange of the common or preferred stock that is redeemed. If a redemption of shares of common or preferred stock is treated as a sale or exchange, the redemption will be taxable as described