Company: NMZ
Filing Date: 2025-09-29
Form Type: N-14 8C
Source: 0001999371-25-014188
Chunk: 178

Company: NUVEEN MUNICIPAL HIGH INCOME OPPORTUNITY FUND
Filing Date: 2025-09-29
Form: N-14 8C
Chunk 178
---
 be predicted. Shareholders should consult their own tax advisers regarding the potential consequences of future legislation
on their investment in the Acquiring Fund.

In addition to exempt-interest dividends,
the Acquiring Fund may also distribute to its shareholders amounts that are treated as long-term capital gain or ordinary income
(which may include short-term capital gains). These distributions may be subject to federal, state and local taxation, depending
on a shareholder’s situation. If so, they are taxable whether or not such distributions are reinvested. Distributions of
net capital gains (the excess of net long-term capital gains over net short- term capital losses) are generally taxable at rates
applicable to long-term capital gains regardless of how long a shareholder has held its shares. Long-term capital gains are currently
taxable to noncorporate shareholders at a maximum federal income tax rate of 20%. In addition, certain individuals, estates and
trusts are subject to a 3.8% Medicare tax on net investment income, including net capital gains and other taxable dividends. Corporate
U.S. shareholders are taxed on capital gain at the same rates as apply to ordinary income. The Acquiring Fund does not expect that
any part of its distributions to shareholders from its investments will qualify for the dividends-received deduction available
to corporate shareholders or as “qualified dividend income” to noncorporate shareholders.

As a RIC, the Acquiring Fund will not be
subject to federal income tax in any taxable year provided that it meets certain distribution requirements. The Acquiring Fund
may retain for investment some (or all) of its net capital gains. If the Acquiring Fund retains any net capital gains or investment
company taxable income, it will be subject to tax at regular corporate rates on the amount retained. If the Acquiring Fund retains
any net capital gains, it may designate the retained amount as undistributed capital gains in a notice to its shareholders who,
if subject to federal income tax on long-term capital gains, (1) will be required to include in income for federal income tax purposes,
as long-term capital gain, their share of such undistributed amount; (2) will be entitled to credit their proportionate shares
of the federal income tax paid by the Acquiring Fund on such undistributed amount against their federal income tax liabilities,
if any; and (3) may claim refunds to the extent the credit exceeds such liabilities. For federal income tax purposes, the basis
of shares owned by a shareholder of the Acquiring Fund will be increased by