Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 130

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 130
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 a USRPI if the Non-U.S. Holder (1) disposes of such stock within a 30-day period preceding
the ex-dividend date of a distribution, any portion of which, but for the disposition, would have been treated as gain from the sale
or exchange of a USRPI and (2) acquires, or enters into a contract or option to acquire, or is deemed to acquire, other shares of
that stock during the 61-day period beginning with the first day of the 30-day period described in clause (1), unless such class of stock
is “regularly traded” and 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 described in clause (1).

If gain on the sale, exchange
or other taxable disposition of our capital stock were subject to taxation under FIRPTA, the Non-U.S. Holder would be required to file
a U.S. federal income tax return and would be subject to regular U.S. federal income tax with respect to such gain in the same manner
as a taxable U.S. Holder (subject to any applicable alternative minimum tax and a special alternative minimum tax in the case of nonresident
alien individuals). In addition, if the sale, exchange or other taxable disposition of our capital stock were subject to taxation under
FIRPTA and if shares of the applicable class of our capital stock were not “regularly traded” on an established securities
market, the purchaser of such capital stock generally would be required to withhold and remit to the IRS 15% of the purchase price.

Redemption or Repurchase by Us

A redemption or repurchase
of shares of our capital stock will be treated under Section 302 of the Code as a distribution (and taxable as a dividend to the
extent of our current and accumulated earnings and profits) unless the redemption or repurchase satisfies one of the tests set forth
in Section 302(b) of the Code and is therefore treated as a sale or exchange of the redeemed or repurchased shares. See “Material
U.S. Federal Income Tax Considerations—Federal Income Tax Considerations for Holders of Our Capital Stock and Debt Securities—Taxation
of Taxable U.S. Holders of Our Capital Stock—Redemption or Repurchase by Us.” Qualified shareholders and their owners may
be subject to different rules, and should consult their tax advisors regarding the application of