Company: FGMCU
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001104659-25-004764
Chunk: 276

Company: FG Merger II Corp.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 276
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) it has in effect a valid election to be treated as a U.S. person.  |

Taxation of Distributions.

If we pay distributions in cash or other property
(other than certain distributions of our stock or rights to acquire our stock) to U.S. holders of our common stock, such distributions
generally will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings
and profits, as determined under U.S. federal income tax principles. Distributions in excess of current and accumulated earnings and
profits will constitute a return of capital that will be applied against and reduce (but not below zero) the U.S. holder’s adjusted
tax basis in our common stock. Any remaining excess will be treated as gain realized on the sale or other disposition of the common stock
and will be treated as described under “U.S. Holders — Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition
of Common Stock and Rights” below.

Dividends we pay to a U.S. holder that is a taxable
corporation generally will qualify for the dividends received deduction if the requisite holding period is satisfied. With certain exceptions
(including, but not limited to, dividends treated as investment income for purposes of investment interest deduction limitations), and
provided certain holding period requirements are met, dividends we pay to a non-corporate U.S. holder generally will constitute “qualified
dividends” that will be subject to tax at preferential long-term capital gains rates. It is unclear whether the redemption rights
with respect to the common stock described in this prospectus may prevent a U.S. holder from satisfying the applicable holding period
requirements with respect to the dividends received deduction or the preferential tax rate on qualified dividend income, as the case
may be. If the holding period requirements are not satisfied, then a corporation may not be able to qualify for the dividends received
deduction and would have taxable income equal to the entire dividend amount, and non-corporate U.S. holders may be subject to tax on
such dividend at regular ordinary income tax rates instead of the preferential rate that applies to qualified dividend income.

Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Common Stock and Rights.

Upon a sale or other taxable disposition of our
common stock or rights which, in general, would include a redemption of common stock or rights that is treated as a sale of such securities
as described below, and including as