Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 126

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 126
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. Holder that is a corporation may also be subject to a branch profits 
 tax of up to 30%, as discussed above; or                                                                                               |

| · | 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 21% U.S. withholding tax described above, if the Non-U.S. Holder did not own more than 10% of such class of stock
at any time during the one-year period ending on the date of the distribution.