Company: DEFI
Filing Date: 2025-11-04
Form Type: POS AM
Source: 0001999371-25-016766
Chunk: 145

Company: Tidal Commodities Trust I
Filing Date: 2025-11-04
Form: POS AM
Chunk 145
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 of the three preceding years and use them to offset section 1256 contract gains in those years, subject to certain limitations. Corporate taxpayers generally may deduct capital losses only to the extent of capital gains, subject to special carryback and carryforward rules. 119 The deduction for expenses incurred by non-corporate taxpayers constituting “miscellaneous itemized deductions,” generally including investment-related expenses (other than interest and certain other specified expenses), is suspended for taxable years beginning after December 31, 2017. During these taxable years, non-corporate taxpayers will not be able to deduct miscellaneous itemized deductions. Although the matter is not free from doubt, the Fund believes management fees the Fund pays to the Sponsor and other expenses of the Fund will constitute investment-related expenses subject to this miscellaneous itemized deduction limitation, rather than expenses incurred in connection with a trade or business and will report these expenses consistent with that interpretation. The Code imposes additional limitations on the amount of certain itemized deductions allowable to individuals with adjusted gross income in excess of certain amounts. For taxable years beginning before January 1, 2026, in the case of an individual whose gross income exceeds a certain amount, the amount of itemized deductions otherwise allowable for the taxable year is reduced by an amount equal to the lesser of:

| ● | 3%                                                                                
 of the individual’s adjusted gross income in excess of certain threshold amounts; 
 or                                                                                |

| ● | 80%                                                                                    
 of the amount of certain itemized deductions otherwise allowable for the taxable year. |

For taxable years beginning on or after January 1, 2026, in the case of an individual, the amount of the itemized deductions otherwise allowable for the taxable year shall be reduced by 2⁄ 37of the lesser of (1) such amount of itemized deductions, or (2) so much of the taxable income of the taxpayer for the taxable year (increased by such amount of itemized deductions) exceeds the dollar amount at which the 37 percent rate bracket under Section 1 of the Code begins with respect to the taxpayer. Non-corporate Shareholders generally may deduct “investment interest expense” only to the extent of their “net investment income.” Investment interest expense of a Shareholder will generally include any interest expense accrued by the Fund and any interest paid or accrued on direct borrowings by a Shareholder to purchase or carry its Shares, such as interest with respect to a margin account. Net investment income generally includes gross income from property held for investment (including “portfolio