Company: SRV
Filing Date: 2025-10-22
Form Type: N-2/A
Source: 0001398344-25-019582
Chunk: 43

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-10-22
Form: N-2/A
Chunk 43
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.S. federal income tax purposes, distributions paid to you by the Fund from its investment company taxable income
are generally taxable to you as ordinary income to the extent of the Fund’s current and accumulated earnings and profits. Certain
properly reported distributions may, however, qualify (provided that holding period and other requirements are met by both the Fund and
the Common Shareholder) (i) for the dividends received deduction in the case of corporate Common Shareholders to the extent that the Fund’s
income consists of dividend income from U.S. corporations or (ii) in the case of individual Common Shareholders, as qualified dividend
income eligible to be taxed at a reduced maximum rate to the extent that the Fund receives qualified dividend income. Qualified dividend
income is, in general, dividend income from taxable domestic corporations and certain non-U.S. corporations. There can be no assurance
as to what portion of the Fund’s dividends will qualify for the dividends received deduction or for treatment as qualified dividend
income.

Distributions made to you from
an excess of net long-term capital gain over net short-term capital loss (“capital gain distributions”), including capital
gain distributions credited to you but retained by the Fund, are taxable to you as long-term capital gains if they have been properly
reported by the Fund, regardless of the length of time you have owned Common Shares. For individuals, long-term capital gains are generally
taxed at a reduced maximum rate.

If, for any calendar year, the
Fund’s total distributions exceed both the current taxable year’s earnings and profits and accumulated earnings and profits
from prior years, the excess will generally be treated as a tax-free return of capital up to the amount of a Common Shareholder’s
tax basis in the Common Shares, reducing that basis accordingly. Such distributions exceeding the Common 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 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. Generally, after
the end of each year, you will be provided with a written notice reporting the amount of ordinary dividend income, capital gain distributions
and other distributions (if relevant).

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The sale or other disposition
of Common Shares will generally result in