Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 67

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 67
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 RIC, the Fund would be required to distribute to its
Common Shareholders its accumulated earnings and profits attributable to non-RIC years. In addition, if the Fund failed to qualify as
a RIC for a period greater than two taxable years, then, in order to qualify as a RIC in a subsequent year, the Fund would be required
to elect to recognize and pay tax on any net built-in gain (the excess of aggregate gain, including items of income, over aggregate loss
that would have been realized if the Fund had been liquidated) or, alternatively, be subject to taxation on such built-in gain recognized
for a period of five years.

Gain or loss on the sale of securities
by the Fund will generally be long-term capital gain or loss if the securities have been held by the Fund for more than one year. Gain
or loss on the sale of securities held for one year or less will be short-term capital gain or loss. If the Fund realizes a net capital
loss, the excess of the Fund’s net short-term capital loss over the Fund’s net long-term capital gain is treated as a short-term
capital loss arising on the first day of the Fund’s next taxable year and the excess of the Fund’s net long-term capital loss
over the Fund’s net short-term capital gain is treated as a long-term capital loss arising on the first day of the Fund’s
next taxable year. If future capital gain is offset by carried forward capital losses, such future capital gain is not subject to Fund-level
U.S. federal income tax, regardless of whether they are distributed to Common Shareholders. Accordingly, the Fund does not expect to distribute
any such offsetting capital gain. A RIC cannot carry back or carry forward any net operating losses.

The Fund may decide to be taxed
as a regular corporation even if the Fund would otherwise qualify as a RIC if the Fund determines that treatment as a corporation for
a particular year would be in the Fund’s best interests.

Certain Fund Investments

Certain of the Fund’s investment
practices are subject to special and complex U.S. federal income tax provisions that may, among other things, (i) disallow, suspend or
otherwise limit the allowance of certain losses or deductions (including the dividends received deduction), (ii) convert lower taxed long-term
capital gains or qualified dividend income into higher taxed short-term capital gains or ordinary income, (iii) convert ordinary loss
or a deduction into capital loss (the deductibility of which