Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 81

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 81
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 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. Holder that is a corporation may also be subject to a branch profits              
 tax of up to 30%, as discussed above; or                                                          |

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| · | the                                                                                         
 Non-U.S. Holder is a nonresident alien individual who is present in the United States       
 for 183 days or more during the taxable year and certain other conditions are met, in which 
 case the Non-U.S. Holder will be subject to U.S. federal income tax at a rate of            
 30% on the Non-U.S. Holder’s capital gains (or such lower rate specified by an              
 applicable income tax treaty), which may be offset by U.S. source capital losses of         
 such Non-U.S. Holder (even though the individual is not considered a resident of the        
 United States), provided the Non-U.S. Holder has timely filed U.S. federal income           
 tax returns with respect to such losses.                                                    |

Pursuant to the Foreign Investment
in Real Property Tax Act, or FIRPTA, distributions to a Non-U.S. Holder that are attributable to gain from sales or exchanges by
us of USRPIs, whether or not designated as capital gain dividends, will cause the Non-U.S. Holder to be treated as recognizing such
gain as income effectively connected with a U.S. trade or business. Non-U.S. Holders generally would be taxed at the regular
rates applicable to U.S. Holders, subject to any applicable alternative minimum tax and a special alternative minimum tax in the
case of nonresident alien individuals. We also will be required to withhold and to remit to the IRS 21% of any distribution to Non-U.S. Holders
attributable to gain from sales or exchanges by us of USRPIs. Distributions subject to FIRPTA may also be subject to a 30% branch profits
tax in the hands of a Non-U.S. Holder that is a corporation. The amount withheld is creditable against the Non-U.S. Holder’s
U.S. federal income tax liability. However, any distribution with respect to any class of stock that is “regularly traded,”
as defined by applicable Treasury Regulations, on an established securities market located in the United States is not subject to FIRPTA,
and therefore, not subject to the