Company: TACOW
Filing Date: 2025-04-09
Form Type: S-1/A
Source: 0001829126-25-002484
Chunk: 283

Company: Berto Acquisition Corp.
Filing Date: 2025-04-09
Form: S-1/A
Chunk 283
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 any ordinary shares will be treated as a corporate distribution and the tax consequences will be
as described under “— Taxation of Distributions” above. Any tax basis of the U.S. Holder in the redeemed ordinary
shares remaining after the application of the rules described under “— Taxation of Distributions” above will
be added to the U.S. Holder’s adjusted tax basis in its remaining shares, or, if such U.S. Holder does not hold any of our shares
after such redemption, to the U.S. Holder’s adjusted tax basis in its warrants or possibly in other shares constructively owned
by it. U.S. Holders who actually or constructively own five percent (or, if our ordinary shares are not then publicly traded, one percent)
or more of our shares (by vote or value) may be subject to special reporting requirements with respect to a redemption of ordinary shares,
and such holders are urged to consult with their own tax advisors with respect to their reporting requirements.

Exercise, Lapse or Redemption of a Warrant

A U.S. Holder generally will
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.

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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