Company: PGYWW
Filing Date: 2025-12-05
Form Type: S-3ASR
Source: 0000950103-25-015781
Chunk: 59

Company: Pagaya Technologies Ltd.
Filing Date: 2025-12-05
Form: S-3ASR
Chunk 59
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 recognized will generally
be equal to the difference between (i) the sum of the amount of cash and the fair market value of any property received in such disposition
and (ii) the U.S. Holder’s adjusted tax basis in its Class A Ordinary Shares sold or exchanged in such disposition.

Any gain or loss recognized by a U.S. Holder on
the disposition of Class A Ordinary Shares will generally be capital gain or loss and will generally be long-term capital gain or loss
if, at the time of the disposition, the U.S. Holder’s holding period in its Class A Ordinary Shares exceeds one year. Long-term
capital gains of individuals and certain other non-corporate U.S. Holders are eligible for reduced rates of taxation. The deductibility
of capital losses is subject to certain limitations.

Any gain or loss realized by a U.S. Holder on
the disposition of Class A Ordinary Shares will generally be treated as U.S.-source gain or loss for U.S. foreign tax credit purposes.
Subject to certain exceptions, Treasury Regulations generally preclude U.S. taxpayers from claiming a foreign tax credit with respect
to any non-U.S. tax imposed on gains from dispositions of shares held as capital assets, unless the tax is creditable under an applicable
income tax treaty. Therefore, under these regulations a U.S. Holder generally will not be entitled to claim a foreign tax credit for Israeli
taxes, if any (including withholding taxes) imposed on any such gain. However, as noted above, the IRS has released notices that provide
temporary relief from certain of the provisions of the Treasury Regulations described above in certain circumstances. Even if the Treasury
Regulations do not prohibit the creditability of Israeli taxes (if any) on dispositions, because any gain from a disposition of Class
A Ordinary Shares will be treated as U.S.-source income, other limitations under the foreign tax credit rules could preclude a U.S. Holder
from claiming a foreign tax credit in whole or in part with respect to any such Israeli taxes. Israeli taxes imposed on any disposition
of the Class A Ordinary Shares that are not creditable may reduce the amount realized on the disposition or alternatively may be deductible
in computing taxable income, subject to applicable limitations. An election to deduct foreign taxes instead of claiming foreign tax credits
applies to all creditable foreign taxes paid or accrued in the relevant taxable year. The rules regarding foreign tax credits and the
deductibility of foreign taxes are complex. All U.S. Holders,