Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 43

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 43
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 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).

The sale or other disposition
of Common Shares will generally result in capital gain or loss to you which will be long-term capital gain or loss if the Common Shares
have been held for more than one year at the time of sale. 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 by you (including amounts credited
to you as an undistributed capital gain distribution). Any loss realized on a sale or exchange of Common Shares will be disallowed if
other substantially identical shares are acquired (whether through the automatic reinvestment of distributions or otherwise) within a
61-day period beginning 30 days before and ending 30 days after the date of disposition of 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 gain of
corporations at the rates applicable to ordinary income. For non-corporate taxpayers, under current law 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.

Dividends and other taxable
distributions are generally taxable to Common Shareholders when paid. If, however, the Fund pays you a distribution in January that was
declared in the previous October, November or December to Common Shareholders of record on a specified date in one of such months, then
such distribution will be treated for tax purposes as being paid by the Fund and