Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 41

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 41
---
 or non-U.S. tax considerations. No ruling has been or will be sought
from the IRS regarding any matter discussed herein. No assurance can be given that the IRS would not assert, or that a court would not
sustain, a position different from any of the tax aspects set forth below. This discussion assumes that you are taxable as a U.S. person
(as defined for U.S. federal income tax purposes) and that you hold Common Shares as capital assets for U.S. federal income tax purposes
(generally, assets held for investment). No attempt is made to present a detailed explanation of all U.S. federal, state, local and foreign
tax concerns affecting the Fund and its Common Shareholders (including Common Shareholders subject to special provisions of the Code).
The discussion set forth herein does not constitute tax advice. Investors are urged to consult their tax advisors to determine the tax
consequences to them of investing in the Fund.

Taxation of the Fund

Since its inception and through
the Fund’s fiscal year ended November 30, 2017, the Fund was treated as a regular corporation, or a “C” corporation,
for U.S. federal income tax purposes and, as a result, unlike most investment companies, was subject to corporate income tax to the extent
the Fund recognized taxable income. In conjunction with certain changes to the Fund’s non-fundamental investment policies that became
effective on February 20, 2018, the Fund has managed its portfolio in a manner intended to allow the Fund to qualify as, and elected
to be treated as, a RIC for U.S. federal income tax purposes beginning with the Fund’s fiscal year ending November 30, 2018.
Except as otherwise expressly indicated, the remainder of this discussion assumes the Fund has qualified and will continue to qualify
for taxation as a RIC for its fiscal year ending November 30, 2018, and thereafter.

In order to qualify as a
RIC, the Fund must, among other things, satisfy certain income, asset diversification and distribution requirements. As long as it so
qualifies, and subject to the discussion of built-in gains below, the Fund will generally not be subject to U.S. federal income tax to
the extent that it distributes annually its investment company taxable income (which includes ordinary income and the excess of net short-term
capital gain over net long-term capital loss) and its “net capital gain” (i.e., the excess of net long-term capital
gain over