Company: TACOW
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001829126-25-002771
Chunk: 292

Company: Berto Acquisition Corp.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 292
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If a U.S. Holder has made a valid
QEF election with respect to our ordinary shares, and the excess distribution rules discussed above do not apply to such shares (because
of a timely QEF election for our first taxable year as a PFIC in which the U.S. Holder holds (or is deemed to hold) such shares or a
purge of the PFIC taint pursuant to a purging election, as described above), then any gain recognized on the sale of our ordinary shares
or warrants, as applicable, generally will be taxable as capital gain and no additional interest charge will be imposed under the PFIC
rules. As discussed above, if we are a PFIC for any taxable year, a U.S. Holder of our ordinary shares that has made a valid QEF election
will be currently taxed on its pro ratashare of our earnings and profits, whether or not distributed for such year. A subsequent
distribution of such earnings and profits that were previously included in a U.S. Holder’s income generally should not be taxable
when distributed to such U.S. Holder. The tax basis of a U.S. Holder’s shares in a QEF will be increased by amounts that are included
in income, and decreased by amounts distributed but not taxed as dividends, under the above rules. In addition, if we are not a PFIC
for any taxable year, such U.S. Holder will not be subject to the QEF inclusion regime with respect to our ordinary shares for such a
taxable year.

Alternatively, if a U.S. Holder,
at the close of its taxable year, owns shares in a PFIC that are treated as “marketable stock”, the U.S. Holder may make
a mark-to-market election with respect to such shares for such taxable year. If the U.S. Holder makes a valid mark-to-market election
for the first taxable year of the U.S. Holder in which the U.S. Holder holds (or is deemed to hold) ordinary shares in us and for which
we are determined to be a PFIC, then such U.S. Holder generally will not be subject to the excess distribution rules described above
with respect to its ordinary shares. Instead, in general, the U.S. Holder will include as ordinary income in each taxable year the excess,
if any, of the fair market value of its ordinary shares at the end of its taxable year over its adjusted basis in its ordinary shares.
These amounts of ordinary income would not be eligible for the