Company: QSEA
Filing Date: 2025-02-24
Form Type: S-1
Source: 0001829126-25-001168
Chunk: 237

Company: Quartzsea Acquisition Corp
Filing Date: 2025-02-24
Form: S-1
Chunk 237
---
 PFIC tax consequences discussed above if such U.S. Holder, at the
close of the first taxable year in which it holds (or is deemed to hold) our ordinary shares, makes a mark-to-market election with respect
to such shares for such taxable year. Such U.S. Holder generally will include for each of its taxable years as ordinary income the excess,
if any, of the fair market value of its ordinary shares at the end of such year over its adjusted basis in its ordinary shares. The U.S.
Holder also will recognize an ordinary loss in respect of the excess, if any, of its 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 its ordinary shares will be treated
as ordinary income. Currently, a mark-to-market election possibly may not be made with respect to our rights.

The mark-to-market election is available only for
“marketable stock,” generally, 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. 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 our interest in, the lower-tier PFIC or the U.S. Holders otherwise were deemed to have disposed of an interest in the
lower-tier PFIC. We will endeavor to cause any lower-tier PFIC to provide to a U.S. Holder the information that may be required to make
or maintain a QEF election with respect to the lower-tier PFIC. There can be