Company: TACOW
Filing Date: 2025-04-09
Form Type: S-1/A
Source: 0001829126-25-002484
Chunk: 288

Company: Berto Acquisition Corp.
Filing Date: 2025-04-09
Form: S-1/A
Chunk 288
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| ● | the amount allocated to the U.S. Holder’s taxable year                                                                          
 in which the U.S. Holder recognized the gain or received the excess distribution, or to the period in the U.S. Holder’s holding 
 period before the first day of our first taxable year in which we are a PFIC, will be taxed as ordinary income;                 |

| ● | the amount allocated to other taxable years (or portions thereof)                                                                  
 of the U.S. Holder and included in its holding period will be taxed at the highest tax rate in effect for that year and applicable 
 to the U.S. Holder without regard to the U.S. Holder’s other items of income and loss for such year; and                           |

| ● | an additional amount equal to the interest charge generally                                                                           
 applicable to underpayments of tax will be imposed on the U.S. Holder with respect to the tax attributable to each such other taxable 
 year of the U.S. Holder.                                                                                                              |

In general, if we are determined
to be a PFIC, a U.S. Holder may be able to avoid the excess distribution rules described above in respect to our ordinary shares (but
under current law, not the warrants) by making a timely and valid QEF election (if eligible to do so) to include in income its pro ratashare of our net capital gains (as long-term capital gain) and other earnings and profits (as ordinary income), on a current
basis, in each case whether or not distributed, in the taxable year of the U.S. Holder in which or with which our taxable year ends.
A U.S. Holder generally may make a separate election to defer the payment of taxes on undistributed income inclusions under the QEF rules,
but if deferred, any such taxes will be subject to an interest charge.

If a U.S. Holder makes a QEF
election with respect to its ordinary shares in a year after our first taxable year as a PFIC in which the U.S. Holder held (or was deemed
to hold) ordinary shares, then, notwithstanding such QEF election, the excess distribution rules discussed above, adjusted to take into
account the current income inclusions resulting from the QEF election, will continue to apply with respect to such U.S. Holder’s
ordinary shares, unless the U.S. Holder makes a purging election under the PFIC rules. Under one type of purging election, the U.S. Holder
will be deemed to have sold such shares at their