Company: TACOW
Filing Date: 2025-04-15
Form Type: S-1/A
Source: 0001829126-25-002650
Chunk: 281

Company: Berto Acquisition Corp.
Filing Date: 2025-04-15
Form: S-1/A
Chunk 281
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not recognize gain or loss upon the acquisition of a ordinary share on the exercise of a warrant for cash. A U.S. Holder’s tax
basis in an ordinary share received upon exercise of a warrant for cash generally will equal the sum of the U.S. Holder’s initial
tax basis in the warrant (that is, the portion of the U.S. Holder’s purchase price paid for its units that is allocated to the
warrant, as described above under “— Allocation of Purchase Price and Characterization of a Unit”) and the exercise
price. It is unclear whether a U.S. Holder’s holding period for the ordinary share received upon the exercise of a warrant will
commence on the date of exercise of the warrant or the day following the date of exercise of the warrant; in either case, such holding
period will not include the period during which the U.S. Holder held the warrant. If a warrant is allowed to lapse unexercised, a U.S.
Holder generally will recognize a capital loss equal to such holder’s tax basis in the warrant.

<div align='center'>186</div>

The tax consequences of a cashless
exercise of a warrant are not clear under current law. Subject to the PFIC rules discussed below, a cashless exercise of a warrant may
not be taxable, either because the exercise is not a realization event for United States federal income tax purposes or because the exercise
is treated as a recapitalization for United States federal income tax purposes. In either situation, a U.S. Holder’s tax basis
in a ordinary share received upon the cashless exercise of a warrant generally should equal the U.S. Holder’s tax basis in the
warrant. If a cashless exercise of a warrant is not a realization event, it is unclear whether a U.S. Holder’s holding period for
the ordinary share received upon the cashless exercise of the warrant would be treated as commencing on the date of exercise of the warrant
or the day following the date of exercise of the warrant; in either case, the holding period will not include the period during which
the U.S. Holder held the warrant. If the cashless exercise of a warrant is treated as a recapitalization, the holding period of the ordinary
shares received upon the cashless exercise of the warrant would include the holding period of the warrant.

It is also possible that a cashless
exercise of a warrant could be treated in part as a taxable exchange in which gain or loss is recognized. In such