Company: SRV
Filing Date: 2025-10-22
Form Type: N-2/A
Source: 0001398344-25-019582
Chunk: 87

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-10-22
Form: N-2/A
Chunk 87
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 loss. If the Fund realizes a
net capital loss, the excess of the Fund’s net short-term capital loss over the Fund’s net long-term capital gain is treated
as a short-term capital loss arising on the first day of the Fund’s next taxable year and the excess of the Fund’s net long-term
capital loss over the Fund’s net short-term capital gain is treated as a long-term capital loss arising on the first day of the
Fund’s next taxable year. If future capital gain is offset by carried forward capital losses, such future capital gain is not subject
to Fund-level U.S. federal income tax, regardless of whether they are distributed to Common Shareholders. Accordingly, the Fund does not
expect to distribute any such offsetting capital gain. A RIC cannot carry back or carry forward any net operating losses.

<div align='center'>S-19</div>

The Fund may decide to be taxed
as a regular corporation even if the Fund would otherwise qualify as a RIC if the Fund determines that treatment as a corporation for
a particular year would be in the Fund’s best interests.

Certain Fund Investments

Certain of the Fund’s
investment practices are subject to special and complex U.S. federal income tax provisions that may, among other things, (i) disallow,
suspend or otherwise limit the allowance of certain losses or deductions (including the dividends received deduction), (ii) convert lower
taxed long-term capital gains or qualified dividend income into higher taxed short-term capital gains or ordinary income, (iii) convert
ordinary loss or a deduction into capital loss (the deductibility of which is more limited), (iv) cause the Fund to recognize income or
gain without a corresponding receipt of cash, (v) adversely affect the time as to when a purchase or sale of stock or securities is deemed
to occur, (vi) adversely alter the characterization of certain complex financial transactions and (vii) produce income that will not qualify
as good income for purposes of the 90% annual gross income requirement described above. The Fund will monitor its transactions and may
make certain tax elections and may be required to borrow money or dispose of securities to mitigate the effect of these rules and prevent
disqualification of the Fund as a RIC.

Certain investment practices
could limit the Fund’s ability to make sufficient distributions to satisfy the Annual Distribution Requirement and to eliminate
the imposition of Fund-level income and excise taxes. For example, the MLPs in which the Fund intends to invest are expected to be