Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 69

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 69
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 foreign
securities, its income from such securities may be subject to withholding and other non-U.S. taxes. The Fund will not be eligible to elect
to “pass through” to Common Shareholders of the Fund the ability to use the foreign tax deduction or foreign tax credit for
foreign taxes paid with respect to qualifying taxes.

Taxation of U.S. Shareholders

For purposes of this discussion,
a “U.S. shareholder” (or in this section, a “shareholder”) is a beneficial owner of Common Shares which is for
U.S. federal income tax purposes (1) an individual who is a citizen or resident of the United States, (2) a corporation (or other entity
taxable as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state
thereof, or the District of Columbia, (3) an estate whose income is subject to U.S. federal income tax regardless of its source, or (4)
a trust if (a) a U.S. court is able to exercise primary supervision over the trust’s administration and one or more U.S. persons
are authorized to control all substantial decisions of the trust or (b) the trust has in effect a valid election to be treated as a domestic
trust for U.S. federal income tax purposes. If a partnership or other entity or arrangement classified as a partnership for U.S. tax purposes
holds the Common Shares, the tax treatment of the partnership and each partner generally will depend on the activities of the partnership
and the status of the partner. Partnerships acquiring Common Shares, and partners in such partnerships, should consult their tax advisors.
Prospective investors that are not U.S. shareholders should refer to the section “Non-U.S. shareholders” below and are urged
to consult their tax advisors with respect to the U.S. federal income tax consequences of an investment in the Fund’s Common Shares,
including the potential application of U.S. withholding taxes.

Distributions paid by the Fund
from its investment company taxable income (as defined above) (dividends from investment company taxable income referred to hereinafter
as “ordinary income dividends”), whether paid in cash or reinvested in Common Shares, will generally be taxable to you as
ordinary income to the extent of the Fund’s current or 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 U.S