Company: GDV-PK
Filing Date: 2025-08-08
Form Type: N-14
Source: 0001829126-25-006008
Chunk: 100

Company: GABELLI DIVIDEND & INCOME TRUST
Filing Date: 2025-08-08
Form: N-14
Chunk 100
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 sum of (i) 98% of its ordinary income (not taking into account any capital gains or losses) for the calendar year, and (ii) 98.2% of its capital gains in excess of its capital losses (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use Preferred Trust’s fiscal year). In addition, the minimum amounts that must be distributed in any year to avoid the federal excise tax will be increased or decreased to reflect any under-distribution or over-distribution, as the case may be, from previous years. For purposes of the excise tax, Preferred Trust will be deemed to have distributed any income on which it paid U.S. federal income tax. Although Preferred Trust intends to distribute any income and capital gains in the manner necessary to minimize imposition of the 4% federal excise tax, there can be no assurance that sufficient amounts of Preferred Trust’s ordinary income and capital gains will be distributed to avoid entirely the imposition of the tax. In that event, Preferred Trust will be liable for the tax only on the amount by which it does not meet the foregoing distribution requirement.

If Preferred Trust were unable to satisfy the 90% distribution requirement or otherwise were to fail to qualify as a RIC in any year, it would generally be taxed on all of its taxable income and gains in the same manner as an ordinary corporation, and distributions to Preferred Trust’s shareholders would not be deductible by Preferred Trust in computing its taxable income. Such distributions would be taxable to the shareholders as ordinary dividends to the extent of Preferred Trust’s current or accumulated earnings and profits. Provided that certain holding period and other requirements are met, such dividends would generally be eligible (i) to be treated as qualified dividend income eligible to be taxed at long term capital gain rates in the case of shareholders taxed as individuals and (ii) for the dividends received deduction in the case of corporate shareholders. To qualify again to be taxed as a RIC in a subsequent year, Preferred Trust would be required to distribute to its shareholders its earnings and profits attributable to non-RIC years. In addition, if Preferred Trust failed to qualify as a RIC for a period greater than two taxable years, then, in order to qualify as a RIC in a subsequent year, Preferred Trust would be required to elect to recognize and pay tax on any net built-in gain (the excess of aggregate gain, including items of income, over aggregate loss that would have been realized if Preferred Trust