Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 125

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 125
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 as otherwise provided
below, we expect to withhold U.S. federal income tax at the rate of 30% on any distributions made to a Non-U.S. Holder unless:

| · | a lower treaty                                                                                                               
 rate applies and the Non-U.S. Holder furnishes an IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) evidencing 
 eligibility for that reduced treaty rate; or                                                                                 |

| · | the Non-U.S.                                                                                                                 
 Holder furnishes an IRS Form W-8ECI (or other applicable documentation) claiming that the distribution is income effectively 
 connected with the Non-U.S. Holder’s trade or business.                                                                      |

Distributions in excess of
our current and accumulated earnings and profits will not be taxable to a Non-U.S. Holder to the extent that such distributions do not
exceed the adjusted tax basis of the holder’s shares of our capital stock, but rather will reduce the adjusted tax basis of such
shares. To the extent that such distributions exceed the Non-U.S. Holder’s adjusted tax basis in such shares, they will generally
give rise to gain from the sale or exchange of such shares, the tax treatment of which is described below. However, such excess distributions
may be treated as dividend income for certain Non-U.S. Holders. For withholding purposes, we expect to treat all distributions as made
out of our current or accumulated earnings and profits. However, amounts withheld may be refundable if it is subsequently determined
that the distribution was, in fact, in excess of our current and accumulated earnings and profits, provided that certain conditions are
met.

Capital Gain Dividends and Distributions Attributable to a Sale or Exchange of United States Real Property Interests

Distributions to a Non-U.S.
Holder that we properly designate as capital gain dividends, other than those arising from the disposition of a USRPI, generally should
not be subject to U.S. federal income taxation, unless:

| · | the investment                                                                                                                         
 in our capital stock is treated as effectively connected with the conduct by the Non-U.S. Holder of a trade or business within the     
 United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the     
 United States to which such dividends are attributable), in which case the Non-U.S. Holder will be subject to the same treatment       
 as U.S. Holders with respect to such gain, except that a Non-U.S