Company: BPAC
Filing Date: 2025-10-22
Form Type: S-1/A
Source: 0001185185-25-001525
Chunk: 228

Company: Blueport Acquisition Ltd
Filing Date: 2025-10-22
Form: S-1/A
Chunk 228
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 in a taxable
year, including its pro rata share of the gross income of any corporation in which it is considered to own at least 25% of the
shares by value, is passive income or (ii) at least 50% of its assets in a taxable year (ordinarily determined based on fair market
value and averaged quarterly over the year), including its pro rata share of the assets of any corporation in which it is considered to
own at least 25% of the shares by value, are held for the production of, or produce, passive income. Passive income generally includes
dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains
from the disposition of assets giving rise to passive income.

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Because we are a blank check company,
with no current active operating business, we believe that it is likely that we will meet the PFIC asset or income test for our current
taxable year. However, pursuant to a startup exception, a corporation will not be a PFIC for the first taxable year the corporation has
gross income (the “startup year”), if (i) no predecessor of the corporation was a PFIC; (ii) the corporation satisfies
the IRS that it will not be a PFIC for either of the first two taxable years following the startup year; and (iii) the corporation
is not in fact a PFIC for either of those years. The applicability of the startup exception to us will not be known until after the
close of our current taxable year and, perhaps, until the end of our two taxable years following our startup year (within the meaning
of the startup exception). Further, after the acquisition of a company or assets in a business combination, we may still meet one of the
PFIC tests depending on the timing of the acquisition and the amount of our passive income and assets as well as the passive income and
assets of the acquired business. If the company that we acquire in a business combination is a PFIC (or we do not complete a business
acquisition by the end of the first taxable year after the taxable year of our formation), then we will likely not qualify for the startup
exception and will be a PFIC for our current taxable year.

Our actual PFIC status for our
current taxable year or any subsequent taxable year will not be determinable until after the end of such taxable year (and, in the