Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 72

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 72
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 Shares, in effect resulting in a taxable return of some of the purchase price.

Dividends and other taxable distributions
will be taxable to you even though they are reinvested in additional Common Shares. The Fund has the ability to declare distributions
payable in cash or Common Shares at the election of each U.S. shareholder. As long as a large enough portion of such dividend is available
to be paid in cash (20% under current guidance) and certain requirements are met, the entire distribution will be treated as a dividend
for U.S. federal income tax purposes. As a result, U.S. shareholders will be taxed on 100% of the dividend in the same manner as a cash
dividend, even though most of the dividend was paid in Common Shares.

Dividends and other distributions
paid by the Fund will generally be treated for U.S. federal income tax purposes as received by you at the time the dividend or distribution
is made. If, however, the Fund pays you a dividend in January that was declared in the previous October, November or December and you
were the U.S. shareholder 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 the Fund and received by you on December 31 of the year in which the dividend was declared. In addition,
certain other distributions made after the close of the Fund’s taxable year may be “spilled back” and treated as paid
by the Fund (except for purposes of the 4% nondeductible excise tax) during such taxable year. In such case, you will be treated as having
received such dividends in the taxable year in which the distributions were actually made.

Certain U.S. shareholders who
are individuals, estates or trusts and whose income exceeds certain thresholds will be required to pay a 3.8% Medicare tax on all or a
portion of their “net investment income,” which ordinarily includes dividends received from the Fund and capital gain from
the sale or other disposition of the Fund’s common shares.

Withholding at a rate of 30%
will be required on dividends in respect of Common Shares held by or through foreign accounts or foreign intermediaries if certain disclosure
requirements related to U.S. accounts or ownership are not satisfied. The Fund will not pay any additional amounts in respect to any amounts
withheld.

Taxation of Non-U.S. Shareholders

For purposes of this discussion,
a “non-U.S