Company: ETV
Filing Date: 2025-05-01
Form Type: 424B5
Source: 0001193125-25-109401
Chunk: 108

Company: Eaton Vance Tax-Managed Buy-Write Opportunities Fund
Filing Date: 2025-05-01
Form: 424B5
Chunk 108
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. Distributions of the Fund’s net capital gain that are properly reported by the Fund as capital gain dividends (“capital gain dividends”), if any, are taxable to Common Shareholders as long-term capital gain, regardless of the length of time the Common Shareholders have held their Common Shares. Distributions of gains from the sale of investments that the Fund owned for one year or less will be taxable as ordinary income. The Fund’s distributions are taxable whether they are paid in cash or reinvested in additional shares. If, for any taxable year, the Fund’s total distributions exceed the Fund’s current and accumulated earnings and profits, the excess will be treated as a tax‑free return of capital to each Common Shareholder (up to the amount of the Common Shareholder’s basis in his or her Common Shares) and thereafter as gain from the sale of Common Shares. The amount treated as a tax‑free return of capital will reduce the Common Shareholder’s adjusted basis in his or her Common Shares, thereby increasing his or her potential gain or reducing his or her potential loss on the subsequent sale or other disposition of his or her Common Shares. A corporation that owns Fund shares generally will only be entitled to the DRD to the extent of the amount of eligible dividends received by the Fund for the taxable year, and only if holding period and other requirements are met at the Common Shareholder and Fund levels. A portion of the Fund’s distributions may qualify for treatment as “qualified dividend income” as described below. If the Fund does not qualify as a RIC for any taxable year, the Fund’s taxable income will be subject to U.S. federal corporate income taxes, and all distributions from earnings and profits, including distributions of net long-term capital gain (if any), will generally be taxable to the Common Shareholder as ordinary income. Such distributions may be eligible to be treated as qualified dividend income with respect to Common Shareholders who are individuals, and may be eligible for the dividends-received deduction (“DRD”) in the case of Common Shareholders taxed as corporations, provided certain holding period and other requirements are met. In order to requalify for taxation as a RIC, the Fund may be required to recognize unrealized gains, pay substantial taxes and interest, and make substantial distributions. Certain of the Fund’s investment practices, including its transactions in options, are subject to special and complex U.S. federal income tax provisions that may, among other things, (i) convert dividends that would otherwise constitute qualified dividend income into ordinary income, (ii) treat