Company: BPAC
Filing Date: 2025-10-22
Form Type: S-1/A
Source: 0001185185-25-001525
Chunk: 233

Company: Blueport Acquisition Ltd
Filing Date: 2025-10-22
Form: S-1/A
Chunk 233
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 to the PFIC rules described above in respect
of its Class A ordinary shares. Instead, in general, the U.S. Holder will include for each of its taxable years as ordinary
income the excess, if any, of the fair market value of its Class A ordinary shares at the end of such year over its adjusted basis
in its Class A ordinary shares. These amounts of ordinary income would not be eligible for the favorable tax rates applicable to
qualified dividend income or long-term capital gains. The U.S. Holder also will recognize an ordinary loss in respect of the excess,
if any, of its adjusted basis of its Class A ordinary shares over the fair market value of its Class A ordinary shares at the
end of its taxable year (but only to the extent of the net amount of previously included income as a result of the mark-to-market election).
The U.S. Holder’s basis in its Class A ordinary shares will be adjusted to reflect any such income or loss amounts, and
any further gain recognized on a sale or other taxable disposition of its Class A ordinary shares will be treated as ordinary income.
Currently, a mark-to-market election may not be made with respect to rights.

The mark-to-market election is
available only for “marketable stock,” generally, stock that is regularly traded on a national securities exchange that is
registered with the Securities and Exchange Commission, including Nasdaq (on which we intend to list the Class A ordinary shares),
or on a foreign exchange or market that the IRS determines has rules sufficient to ensure that the market price represents a legitimate
and sound fair market value. In general, the Class A ordinary shares will be treated as regularly traded in any calendar year in
which more than a de minimis quantity of Class A ordinary shares are traded on a qualified exchange on at least 15 days during
each calendar quarter. There can be no assurance that trading in our Class A ordinary shares will be sufficient to treat such shares as
“marketable stock” for these purposes in any given calendar year.

If made, a mark-to-market election
would be effective for the taxable year for which the election was made and for all subsequent taxable years unless the Class A
ordinary shares ceased to qualify as “marketable stock” for purposes of the PFIC rules or the IRS consented to the revocation
of the election. U.S. Holders are urged to consult their own tax advisors regarding the availability and tax consequences of a mark-to-market
election in respect to our Class A ordinary shares under their