Company: GDV-PK
Filing Date: 2025-08-08
Form Type: N-14
Source: 0001829126-25-006008
Chunk: 105

Company: GABELLI DIVIDEND & INCOME TRUST
Filing Date: 2025-08-08
Form: N-14
Chunk 105
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”), if any, are taxable to shareholders at the reduced rates applicable to long term capital gain, regardless of how long the shareholder has held Preferred Trust’s shares. Capital gain distributions are not eligible for the dividends received deduction.

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Preferred Trust may either distribute or retain for reinvestment all or part of its net capital gain. If any such gain is retained, Preferred Trust will be subject to regular corporate income tax on the retained amount. In that event, Preferred Trust may report the retained amount as undistributed capital gain in a notice to its shareholders, each of whom (i) will be required to include in income for U.S. federal income tax purposes as long term capital gain its share of such undistributed amounts, (ii) will be entitled to credit its proportionate share of the tax paid by Preferred Trust against its U.S. federal income tax liability and to claim refunds to the extent that the credit exceeds such liability and (iii) will increase its basis in its shares of Preferred Trust by the amount of undistributed capital gains included in the shareholder’s income less the tax deemed paid by the shareholder under clause (ii).

Distributions in excess of Preferred Trust’s current and accumulated earnings and profits will be treated as a tax-free return of capital to the extent of your adjusted tax basis of your shares and thereafter will be treated as capital gains. The amount of any Preferred Trust distribution that is treated as a tax-free return of capital will reduce your adjusted tax basis in your shares, thereby increasing your potential gain or reducing your potential loss on any subsequent sale or other disposition of your shares. In determining the extent to which a distribution will be treated as being made from Preferred Trust’s earnings and profits, earnings and profits will be allocated on a pro rata basis first to distributions with respect to Preferred Trust’s preferred shares, if any, and then to Preferred Trust’s common shares.

Dividends and other taxable distributions are taxable to you even though they are reinvested in additional shares of Preferred Trust. Dividends and other distributions paid by Preferred Trust are generally treated under the Code as paid by Preferred Trust and received by you at the time the dividend or distribution is made. If, however, Preferred Trust pays you a dividend in January that was declared in the previous October, November or December to shareholders of record on a specified date in one of such months, then such dividend will be treated for U.S. federal income tax purposes as being paid by Preferred Trust and received by you on December 31 of the year in