Company: RITM-PC
Filing Date: 2025-09-22
Form Type: 424B5
Source: 0001140361-25-035712
Chunk: 109

Company: Rithm Capital Corp.
Filing Date: 2025-09-22
Form: 424B5
Chunk 109
---
 In general, partnerships are “pass-through” entities that are not subject to U.S. federal income tax. Rather, partners are allocated their proportionate shares of the items of income, gain, loss, deduction and credit of a partnership, and are potentially subject to tax on these items, without regard to whether the partners receive a distribution from the partnership. We will include in our income our proportionate share of these partnership items for purposes of the various REIT income tests and in computation of our REIT taxable income. Moreover, for purposes of the REIT asset tests, we will include in our calculations our proportionate share of any assets held by subsidiary partnerships. Our proportionate share of a partnership’s assets and income is based on our capital interest in the partnership (except that for purposes of the 10% value test, our proportionate share is based on our proportionate interest in the equity and certain debt securities issued by the partnership). See “ —Taxation of REITs in General—Effect of Subsidiary Entities—Ownership of Partnership Interests.”

47

#### TABLE OF CONTENTS

#### Entity Classification
Any investment in partnerships involves special tax considerations, including the possibility of a challenge by the IRS of the status of any subsidiary partnership as a partnership, as opposed to an association taxable as a corporation, for U.S. federal income tax purposes (for example, if the IRS were to assert that a subsidiary partnership is a TMP). See “ —Taxation of REITs in General—Taxable Mortgage Pools and Excess Inclusion Income. ” If any of these entities were treated as an association for U.S. federal income tax purposes, it would be taxable as a corporation and therefore could be subject to an entity-level tax on its income. In such a situation, the character of our assets and items of gross income would change and could preclude us from satisfying the REIT asset tests or the gross income tests as discussed in “ —Taxation of REITs in General—Asset Tests ” and “ —Income Tests ,” and in turn could prevent us from qualifying as a REIT, unless we are eligible for relief from the violation pursuant to relief provisions described above. See “ —Taxation of REITs in General—Asset Tests ,” “ —Income Tests ” and “ —Failure to Qualify ,” above, for discussion of the effect of failure to satisfy the REIT tests for a taxable year, and of the relief provisions. In addition, any change in the status of any subsidiary partnership