Company: AUST
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001410578-25-000509
Chunk: 101

Company: Austin Gold Corp.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 10
Chunk 101
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 of (i) net long-term capital gain over (ii) net short-term capital loss, and “ordinary earnings” are the excess of (x) “earnings and profits” over (y) net capital gain. A U. S. Holder that makes a QEF Election will be subject to U. S. federal income tax on such amounts for each tax year in which we are a PFIC, regardless of whether such amounts are actually distributed to such U. S. Holder by us. However, for any tax year in which we are a PFIC and have no net income or gain, U. S. Holders that have made a QEF Election would not have any income inclusions as a result of the QEF Election. If a U. S. Holder that made a QEF Election has an income inclusion, such a U. S. Holder may, subject to certain limitations, elect to defer payment of current U. S. federal income tax on such amounts, subject to an interest charge. If such U. S. Holder is not a corporation, any such interest paid will be treated as “personal interest,” which is not deductible.

A U. S. Holder that makes a timely and effective QEF Election generally (a) may receive a tax-free distribution from us to the extent that such distribution represents “earnings and profits” that were previously included in income by the U. S. Holder because of such QEF Election and (b) will adjust such U. S. Holder’s tax basis in the Common Shares to reflect the amount included in income or allowed as a tax-free distribution because of such QEF Election. In addition, a U. S. Holder that makes a QEF Election generally will recognize capital gain or loss on the sale or other taxable disposition of Common Shares.

The procedure for making a QEF Election, and the U. S. federal income tax consequences of making a QEF Election, will depend on whether such QEF Election is timely. A QEF Election will be treated as “timely” for purposes of avoiding the default PFIC rules discussed above if such QEF Election is made for the first year in the U. S. Holder’s holding period for the Common Shares in which we were a PFIC. A U. S. Holder may make a timely QEF Election by filing the appropriate QEF Election documents at the time such U. S. Holder files a U. S. federal income tax return for such year. If a U. S. Holder owns