AB 2020 Form 10-K

9. Tax Information The tax character of distributions during the years ended December 31, 2020, December 31, 2019 and December 31, 2018 was as follows: December 31, 2020 December 31, 2019 December 31, 2018 Distributions paid from: Ordinary Income $ 11,751,072 $ 6,505,658 $2,296,224 Net Long-Term Capital Gains $ 431,217 $ 37,334 $ — Total Taxable Distributions $ 12,182,289 $ 6,542,992 $2,296,224 As of December 31, 2020, December 31, 2019 and December 31, 2018 the components of Accumulated Earnings (Losses) on a tax basis were as follows: December 31, 2020 December 31, 2019 December 31, 2018 Undistributed Ordinary Income – Net $ 105,976 $ 168,243 $ 48,384 Undistributed Long-Term Income – Net $ 905,096 $ — $ 1,311 Total Undistributed Earnings $ 1,011,072 $ 168,243 $ 49,695 Capital Loss Carryforward — $ — $ — Unrealized Earnings (Losses) – Net $ (6,371,977) $ (1,848,420) $ (677,969) Total Accumulated Earnings (Losses) – Net $ (5,360,905) $ (1,680,177) $ (628,274) The difference between GAAP-basis and tax basis unrealized gains (losses) is due to investment in partnerships. In order to present certain components of the Fund’s capital accounts on a tax-basis, certain reclassifications have been recorded to the Fund’s accounts. These reclassifications have no impact on the NAV of the Fund and result primarily from the re-designation of dividends and the tax treatment of fee income. December 31, 2020 December 31, 2019 December 31, 2018 Paid-in capital in excess of par $ 0 $ 76,353 $ (33,926) Accumulated undistributed net investment income $ (1,244,770) $ (654,027) $ (6,255) Accumulated net realized gain (loss) $ 1,244,770 $ 577,674 $ 40,181 The Fund has three taxable subsidiaries (the “Taxable Subsidiaries”), each of which holds one investment listed on the consolidated schedules of investments. The Taxable Subsidiaries are consolidated for financial reporting purposes, such that the Fund’s consolidated financial statements reflect the Fund’s investments in the portfolio companies owned by the Taxable Subsidiaries. The purpose of the Taxable Subsidiaries is to permit the Fund to hold certain portfolio companies that are organized as pass-through entities and still satisfy the RIC tax compliance requirements. The net investment income and capital gains and losses from the pass-through entities are taxed to the Taxable Subsidiaries and do not flow through to the RIC. The Taxable Subsidiaries are not consolidated for income tax purposes and the corporate subsidiaries may generate income tax expense as a result of their ownership of the portfolio companies. This income tax expense is reflected in the Fund’s consolidated statements of operations. Additionally, any net unrealized appreciation or depreciation related to portfolio investments held by the Taxable Subsidiaries is reflected net of applicable federal and state income taxes in the Fund’s consolidated statements of operations, with the related deferred tax liabilities presented in the Fund’s consolidated statements of assets and liabilities. ASC 740 provides guidance on the accounting for and disclosure of uncertainty in tax position. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Based on its analysis of its tax position for all open tax years (the current and prior years, as applicable), the Fund has concluded that it does not have any uncertain tax positions that met the recognition or measurement criteria of ASC 740. Such open tax years remain subject to examination and adjustment by tax authorities. F-43