Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 283

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 283
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 should consult its tax advisor as to the availability of the dividends received deduction or the preferential tax rate on qualified dividend income. 168 Non -corporateU.S. Holders that do not meet a minimum holding period requirement or that elect to treat the dividend income as “investment income” pursuant to Section 163(d)(4) of the Code (dealing with the deduction for investment interest expense) will not be eligible for the reduced rates of taxation applicable to qualified dividends. In addition, the rate reduction will not apply to dividends if the recipient of a dividend is obligated to make related payments with respect to positions in substantially similar or related property. This disallowance applies even if the minimum holding period has been met. Please see the section entitled “ Treatment of Redemption for U.S. Federal Income Tax Purposes” above and consult your own tax advisors to determine if the redemption should be treated as a distribution for U.S. federal income tax purposes in your particular circumstances. Sale, Exchange or Other Taxable Disposition of New Fold Common Stock; Redemption of Emerald Public Shares Treated as Sale or Exchange A U.S. Holder will recognize gain or loss on any sale, exchange or other taxable disposition of New Fold Common Stock, or on a redemption of Emerald Public Shares treated as a sale of exchange, in an amount equal to the difference between the amount realized on the disposition and such U.S. Holder’s adjusted tax basis in such New Fold Common Stock or Emerald Public Shares, as applicable. Any gain or loss recognized by a U.S. Holder on a taxable disposition of New Fold Common Stock, or on a redemption of Emerald Public Shares treated as a sale of exchange, will be capital gain or loss and will be long -termcapital gain or loss if the holder’s holding period in New Fold Common Stock or Emerald Public Shares, as applicable, exceeds one year at the time of the disposition. Preferential tax rates may apply to long -termcapital gains recognized by non -corporateU.S. Holders (including individuals). It is unclear, however, whether the redemption rights with respect to the Emerald Public Shares described herein may suspend the running of the applicable holding period for this purpose. The deductibility of capital losses is subject to limitations. Any gain or loss recognized by a U.S. Holder on the sale or exchange of New Fold Common Stock or on the redemption of Emerald Public Shares treated as a sale or exchange will be treated as U.S. source gain or loss. Generally, the amount of gain or loss recognized by a U.S. Holder