Company: TACOW
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001829126-25-002771
Chunk: 286

Company: Berto Acquisition Corp.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 286
---
less
exercise of a warrant could be treated in part as a taxable exchange in which gain or loss is recognized. In such event, a U.S. Holder
could be deemed to have surrendered a number of warrants equal to the number of ordinary shares having a value equal to the exercise
price for the total number of warrants exercised on a cashless basis. In such case, subject to the PFIC rules discussed below, the U.S.
Holder would recognize capital gain or loss with respect to the warrants deemed surrendered in an amount equal to the difference between
the fair market value of the ordinary shares that would have been received in a regular exercise of the warrants deemed surrendered and
the U.S. Holder’s tax basis in the warrants deemed surrendered. In this case, a U.S. Holder’s aggregate tax basis in the
ordinary shares received would equal the sum of the U.S. Holder’s initial investment in the warrants deemed exercised (that is,
the portion of the U.S. Holder’s purchase price for the units that is allocated to the warrants, as described above under “—
Allocation of Purchase Price and Characterization of a Unit”) and the aggregate exercise price of such warrants. It is unclear
whether a U.S. Holder’s holding period for the ordinary shares would commence on the date of exercise of the warrants or the day
following the date of exercise of the warrants; in either case, the holding period will not include the period during which the U.S.
Holder held the warrants.

Due to the absence of authority
on the United States federal income tax treatment of a cashless exercise of warrants, including when a U.S. Holder’s holding period
would commence with respect to the ordinary share received pursuant to the cashless exercise of warrants, there can be no assurance regarding
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 own tax advisors regarding the tax consequences of a cashless exercise of warrants.

Subject to the PFIC rules described
below, if we redeem a U.S. Holder’s warrants for cash pursuant to the redemption provisions described in the section of this prospectus
entitled “Description of Securities — Warrants — Public Shareholders’ Warrants” or if we purchase
a U.S. Holder’s warrants in an open market transaction, such redemption or purchase generally will be treated as a taxable disposition
to the U.S. Holder, taxed as described above under “—