Company: TACOW
Filing Date: 2025-04-15
Form Type: S-1/A
Source: 0001829126-25-002650
Chunk: 289

Company: Berto Acquisition Corp.
Filing Date: 2025-04-15
Form: S-1/A
Chunk 289
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 loss in respect of the excess, if any, of its adjusted basis in its ordinary
shares over the fair market value of its ordinary shares at the end of its taxable year (but only to the extent of the net amount of
previously included income as a result of the mark-to-market election). The U.S. Holder’s basis in its ordinary shares will be
adjusted to reflect any such income or loss amounts, and any further gain recognized on a sale or other taxable disposition of its ordinary
shares will be treated as ordinary income. Currently, a mark-to-market election may not be made with respect to warrants. The mark-to-market
election is available only for stock that is regularly traded on a national securities exchange that is registered with the Securities
and Exchange Commission, including Nasdaq (on which we intend to list the ordinary shares), or on a foreign exchange or market that the
IRS determines has rules sufficient to ensure that the market price represents a legitimate and sound fair market value. If made, a mark-to-
market election would be effective for the taxable year for which the election was made and for all subsequent taxable years unless the
ordinary shares ceased to qualify as “marketable stock” for purposes of the PFIC rules or the IRS consented to the revocation
of the election. U.S. Holders are urged to consult their own tax advisors regarding the availability and tax consequences of a mark-to-market
election in respect to our ordinary shares under their particular circumstances.

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If we are a PFIC and, at any
time, have a foreign subsidiary that is classified as a PFIC (a “lower-tier PFIC”), then a U.S. Holder generally will be
deemed to own a portion of the shares of such lower-tier PFIC, and generally could incur liability for the deferred tax and interest
charge described above if we receive a distribution from, or dispose of all or part of our interest in, the lower-tier PFIC or if the
U.S. Holder otherwise were deemed to have disposed of an interest in the lower-tier PFIC. Upon written request, we will endeavor to cause
any lower-tier PFIC to provide to a U.S. Holder any information that may be required to make or maintain a QEF election with respect
to the lower-tier PFIC. There can be no assurance that we will have timely knowledge of the status of any such lower-tier PFIC.

In addition, we may not hold
a controlling interest in any such