Company: DEFI
Filing Date: 2025-11-04
Form Type: POS AM
Source: 0001999371-25-016766
Chunk: 140

Company: Tidal Commodities Trust I
Filing Date: 2025-11-04
Form: POS AM
Chunk 140
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if any) would be taxable to Shareholders as dividend income to the extent of the Fund’s current and accumulated earnings and profits. To the extent that the amount of the distribution exceeded the Fund’s current and accumulated earnings and profits, the excess would be treated as a tax-free return of capital to the extent of the Shareholder’s adjusted basis in the Shares and, to the extent the amount of the distribution exceeded both the Fund’s current and accumulated earnings and profits and the Shareholder’s adjusted tax basis in such Shares, such excess would be treated as capital gain for such Shareholders who hold their Shares as capital assets. Accordingly, if the Fund were to be taxable as a corporation, it would likely have a material adverse effect on the economic return from an investment in the Fund and on the value of the Shares. The remainder of this summary assumes that the Fund is classified for U.S. federal income tax purposes as a publicly traded partnership that it is not taxable as a corporation.] U.S. Shareholders Tax Consequences of Ownership of Shares Taxation of the Fund’s Income. No U.S. federal income tax is paid by the Fund on its income. Instead, the Fund files annual information returns, and each U.S. Shareholder is required to report on its U.S. federal income tax return its allocable share of the income, gain, loss, deductions and credits of the Fund. These items must be reported by the applicable Shareholder without regard to the amount (if any) of cash or property the Shareholder receives from the Fund during the taxable year. Consequently, a Shareholder may be allocated income or gain recognized by the Fund but receive no cash distribution with which to pay the resulting tax liability or may receive a distribution that is insufficient to pay such liability. Because the Sponsor currently does not intend to make distributions, it is likely that, in any year the Fund realizes net income and/or gain, a U.S. Shareholder that is allocated income or gain from the Fund will be required to pay taxes on its allocable share of such income or gain from sources other than Fund distributions. In addition, individuals with modified adjusted gross income in excess of $200,000 ($250,000 in the case of married individuals filing jointly) and certain estates and trusts are subject to an additional 3.8% surtax on their “net investment income,” which generally includes net income from interest, dividends, annuities, royalties, and rents, and net capital gains (other than certain amounts earned from trades or businesses). Also included as