Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 71

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 71
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 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.

<div align='center'>S-11</div>

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 of any capital gain dividends received (including amounts credited
as an undistributed capital gain) by the U.S. shareholder. Any loss a U.S. shareholder realizes on a sale or exchange of Common Shares
will be disallowed if the U.S. shareholder acquires other Common Shares (whether through the automatic reinvestment of dividends or otherwise)
within a 61-day period beginning 30 days before and ending 30 days after the U.S. shareholder’s sale or exchange of the Common Shares.
In such case, the basis of the Common Shares acquired will be adjusted to reflect the disallowed loss. Present law taxes both long-term
and short-term capital gains of corporations at the rates applicable to ordinary income. For non-corporate taxpayers, short-term capital
gain is taxed at the U.S. federal income tax rates applicable to ordinary income, while long-term capital gain generally is taxed at a
reduced maximum U.S. federal income tax rate.

U.S. shareholders may be entitled
to offset their capital gains with capital losses. There are several provisions of the Code affecting when capital losses may offset capital
gain, and limiting the use of losses from certain investments and activities. Accordingly, U.S. shareholders with capital losses are urged
to consult their tax advisors.

An investor should be aware that
if Common Shares are purchased shortly before the record date for any taxable distribution (including a capital gain dividend), the purchase
price likely will reflect the value of the distribution and the investor then would receive a taxable distribution likely to reduce the
trading value of such Common