Company: SOJE
Filing Date: 2025-11-04
Form Type: 424B2
Source: 0000092122-25-000092
Chunk: 144

Company: SOUTHERN CO
Filing Date: 2025-11-04
Form: 424B2
Chunk 144
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 as the case may be, a United States Holder generally will recognize gain or loss upon such disposition equal to the difference between (i) the portion of the proceeds received by such United States Holder that is allocable to the purchase contract and the RSNs or the Treasury securities or the Treasury portfolio, as the case may be, and (ii) such United States Holder’s adjusted tax basis in the purchase contract and such RSNs or Treasury securities or Treasury portfolio, respectively. For purposes of determining gain or loss, the proceeds received by such United States Holder upon such disposition (i) will not include any amount properly attributable to accrued but unpaid interest on the RSNs or accrued acquisition discount on the Treasury portfolio or the Treasury securities, which amount will be taxable as ordinary interest income to the extent not previously included in income by such United States Holder, and (ii) may not include any amount properly attributable to accrued contract adjustment payments, which amount may be treated as ordinary income to the extent not previously included in income by such United States Holder. In the case of the RSNs, the Treasury securities, the Treasury portfolio or the purchase contract, any such gain or loss generally will be capital gain or loss and will be long-term capital gain or loss if, at the time of such disposition, the United States Holder held such RSNs, Treasury securities, Treasury portfolio or the purchase contract for a period of more than one year. Certain non-corporate United States Holders, including individuals, are eligible for preferential tax rates with respect to long-term capital gains. The deductibility of capital losses is subject to limitations.

If the sale, exchange or other taxable disposition of an Equity Unit by a United States Holder occurs when the purchase contract has a negative value, the United States federal income tax consequences are, in the absence of any authorities on point, unclear. A United States Holder could be considered to have received additional consideration for the ownership interest in the RSNs, the Treasury securities, or the Treasury portfolio in an amount equal to such negative value and to have paid such amount to be released from the United States Holder’s obligation under the purchase contract. Alternatively, for this limited purpose, the Equity Unit could be treated as one investment unit and gain or loss determined on a net basis. United States Holders should consult their tax advisors regarding a disposition of an Equity Unit at a time when the purchase contract has a negative value.

#### The RSNs
The discussion in this section applies to a United States Holder that holds RSNs