Company: QSEA
Filing Date: 2025-02-24
Form Type: S-1
Source: 0001829126-25-001168
Chunk: 229

Company: Quartzsea Acquisition Corp
Filing Date: 2025-02-24
Form: S-1
Chunk 229
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 to a non-corporate U.S. Holder will generally be taxed as qualified dividend income
at the preferential tax rate for long-term capital gains. It is unclear whether the redemption rights with respect to the ordinary shares
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 met, 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 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 Our Ordinary Shares and Rights

A U.S. Holder generally will recognize capital gain
or loss on a sale or other taxable disposition of our ordinary shares or rights (including on our dissolution and liquidation if we do
not complete an initial business combination within the required time period). Any such capital gain or loss generally will be long-term
capital gain or loss if the U.S. Holder’s holding period for such ordinary shares or rights exceeds one year. Long-term capital
gains recognized by a non-corporate U.S. Holder are currently eligible to be taxed preferential rates. It is unclear, however, whether
certain redemption rights described in this prospectus may suspend the running of the applicable holding period for this purpose. If
the running of the holding period for the ordinary shares is suspended, then non-corporate U.S. Holders may not be able to satisfy the
one-year holding period requirement for long-term capital gain treatment, in which case any gain on a sale or taxable disposition of
the shares would be subject to short-term capital gain treatment and would be taxed at regular ordinary income tax rates. The deductibility
of capital losses is subject to limitations.

The amount of gain or loss recognized on a sale or
other taxable disposition generally will be equal to the difference between (i) the sum of the amount of cash and the fair market value
of any property received in such disposition (or, if our ordinary shares or rights are held as part of units at the time of the disposition,
the portion of the amount realized on such disposition that is allocated to the ordinary shares or rights based upon the then relative
fair