Company: SRV
Filing Date: 2025-10-22
Form Type: N-2/A
Source: 0001398344-25-019582
Chunk: 90

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-10-22
Form: N-2/A
Chunk 90
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. shareholder as long-term
capital gains if they have been properly reported by the Fund, regardless of the length of time the U.S. shareholder has owned Common
Shares of the Fund. Net long-term capital gain of individuals is generally taxed at a reduced maximum rate. For corporate taxpayers, net
long-term capital gain is taxed at ordinary income rates.

Subject to any future regulatory
guidance to the contrary, any distribution of income attributable to income from the Fund’s investment in an MLP will not qualify
for the 20% deduction for “qualified PTP income” that would generally be available to a non-corporate U.S. shareholder were
the shareholder to own such MLP directly. As a result, it is possible that a non-corporate U.S. shareholder will be subject to a higher
effective tax rate on any such distributions received from the Fund compared to the effective rate applicable to any income the U.S. shareholder
would receive if the shareholder invested directly in an MLP.

If, for any calendar year, the
Fund’s total distributions exceed both current earnings and profits and accumulated earnings and profits, the excess will generally
be treated as a tax-free return of capital up to the amount of a U.S. shareholder’s tax basis in the Common Shares, reducing that
basis accordingly. Such distributions exceeding the U.S. shareholder’s basis will be treated as gain from the sale or exchange of
the Common Shares. When you sell your Common Shares, the amount, if any, by which your sales price exceeds your basis in the Fund’s
Common Shares is gain subject to tax. Because a return of capital reduces your basis in the Common Shares, it will increase the amount
of your gain or decrease the amount of your loss when you sell the Common Shares, all other things being equal.

Generally, after the close of
its taxable year, the Fund will provide its U.S. shareholders with a written notice reporting the amount of any ordinary income dividends
or capital gain dividends and other distributions.

The sale or other disposition
of Common Shares will generally result in capital gain or loss to U.S. shareholders measured by the difference between the sale price
and the U.S. shareholder’s tax basis in its Common Shares. Generally, a U.S. shareholder’s gain or loss will be long-term
gain or loss if the Common Shares have been held for more than one year. Any loss upon the sale or exchange of Common Shares held for
six months or less will be treated as long-term capital loss to the extent