Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 190

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 10
Chunk 190
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ging election, and pays the tax and interest
charge with respect to the gain inherent in such shares attributable to the pre-QEF election period.

Alternatively, if a U. S. Holder,
at the close of its taxable year, owns shares in a PFIC that are treated as marketable stock, the U. S. Holder may make a mark-to-market
election with respect to such shares for such taxable year. If the U. S. Holder makes a valid mark-to-market election for the first taxable
year of the U. S. Holder in which the U. S. Holder holds (or is deemed to hold) shares in us and for which we are determined to be a PFIC,
such holder generally will not be subject to the PFIC rules described above in respect to its Ordinary Shares. Instead, in general, the
U. S. Holder will include as ordinary income each year the excess, if any, of the fair market value of its Ordinary Shares at the end of
its taxable year over the adjusted basis in its Ordinary Shares. The U. S. Holder also will be allowed to take an ordinary loss in respect
of the excess, if any, of the adjusted basis of 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 the Ordinary Shares will be treated as ordinary income.

The mark-to-market election
is available only for stock that is regularly traded on a national securities exchange that is registered with the SEC, 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. U. S. Holders should 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.

If we are a PFIC and, at any
time, have a foreign subsidiary that is classified as a PFIC, U. S. Holders generally would 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