Company: GDSTR
Filing Date: 2025-01-30
Form Type: S-4
Source: 0001213900-25-008051
Chunk: 160

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-01-30
Form: S-4
Chunk 160
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.S. Federal Income Tax Consequences to U.S. Holders In the event that a U.S. Holder elects to redeem its Goldenstone Public Shares for cash, the treatment of the transaction for U.S. federal income tax purposes will depend on whether the redemption qualifies as a sale or exchange of the Goldenstone Public Shares under Section 302 of the Code or is treated as a corporate distribution 82 under Section 301 of the Code with respect to the U.S. Holder. If the redemption qualifies as a sale or exchange of the Goldenstone Public Shares, the U.S. Holder will be treated as recognizing capital gain or loss equal to the difference between the amount realized on the redemption and such U.S. Holder’s adjusted tax basis in Goldenstone Public Shares surrendered in such redemption transaction. Any such capital gain or loss generally will be long -termcapital gain or loss if the U.S. Holder’s holding period for the Goldenstone Public Shares redeemed exceeds one year. It is unclear, however, whether the redemption rights with respect to the Goldenstone Public Shares may suspend the running of the applicable holding period for this purpose. Long term capital gain realized by a non -corporateU.S. Holder is currently taxed at a reduced rate. The deductibility of capital losses is subject to limitations. Redemption Treated as Sale or Exchange Whether a redemption qualifies for sale or exchange treatment will depend largely on the total number of shares of Goldenstone Public Shares treated as held by the U.S. Holder relative to all of the shares of Goldenstone Public Shares outstanding both before and after the redemption. The redemption of Goldenstone Public Shares generally will be treated as a sale or exchange of the Goldenstone Public Shares (rather than as a corporate distribution) if the redemption (i) is “substantially disproportionate” with respect to the U.S. Holder, (ii) results in a “complete termination” of the U.S. Holder’s interest in Goldenstone or (iii) is “not essentially equivalent to a dividend” with respect to the U.S. Holder. These tests are explained more fully below. In determining whether any of the foregoing tests are satisfied, a U.S. Holder takes into account not only Goldenstone Public Shares actually owned by the U.S. Holder, but also shares of Goldenstone Public Shares that are constructively owned by it. A U.S. Holder may constructively own, in addition to stock owned directly, stock owned by certain related individuals and entities in which the U.S. Holder has an interest or that have an interest in