Company: GSRF
Filing Date: 2025-08-25
Form Type: S-1/A
Source: 0001213900-25-080052
Chunk: 264

Company: GSR IV Acquisition Corp.
Filing Date: 2025-08-25
Form: S-1/A
Chunk 264
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 market value equal to the conversion price for the total number of rights to be conversion. Subject to the PFIC rules discussed below, the U.S. Holder would recognize capital gain or loss in an amount equal to the difference between the fair market value of the rights deemed surrendered and the U.S. Holder’s tax basis in such rights. In this case, a U.S. Holder’s tax basis in the ordinary shares received would equal the sum of the U.S. Holder’s initial investment in the rights converted (i.e. the portion of the U.S. Holder’s purchase price for the units that is allocated to the right, as described above under “— Allocation of Purchase Price and Characterization of a Unit”) and the conversion price of such rights. It is unclear whether a U.S. Holder’s holding period for the ordinary shares would commence on the date of conversion of the right or the day following the date of conversion of the right. Because of the absence of authority on the U.S. federal income tax treatment of a cashless conversion, there can be no assurance which, if any, of the alternative tax consequences and holding periods described above would be adopted by the IRS or a court of law. Accordingly, U.S. Holders should consult their tax advisors regarding the tax consequences of a cashless conversion. Passive Foreign Investment Company Rules A foreign (i.e. non -U.S.) corporation will be a PFIC for U.S. tax purposes if at least 75% of its gross income in a taxable year, including its pro rata share of the gross income of any corporation in which it is considered to own at least 25% of the shares by value, is passive income. Alternatively, a foreign corporation will be a PFIC if at least 50% of its assets in a taxable year of the foreign corporation, ordinarily determined based on fair market value and averaged quarterly over the year, including its pro rata share of the assets of any corporation in which it is considered to own at least 25% of the shares by value, are held for the production of, or produce, passive income. Passive income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition of passive assets. Because we are a blank check company, with no current active business, we believe that it is likely that we will meet the PFIC asset or income test for our current taxable year. However, pursuant to a start -upexception, a