Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 115

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 115
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. This discussion is limited to holders who hold our capital stock or debt securities as “capital assets”
within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all U.S.
federal income tax consequences relevant to a holder’s particular circumstances, including the alternative minimum tax. In addition,
except where specifically noted, it does not address consequences relevant to holders subject to special rules, including, without limitation:

| · | U.S. expatriates                                                 
 and former citizens or long-term residents of the United States; |

| · | U.S. Holders                                                         
 (as defined below) whose functional currency is not the U.S. dollar; |

| · | persons holding                                                                                                                           
 our capital stock or debt securities as part of a hedge, straddle or other risk reduction strategy or as part of a conversion transaction 
 or other integrated investment;                                                                                                           |

| · | banks, insurance                             
 companies, and other financial institutions; |

| · | REITs or regulated    
 investment companies; |

| · | brokers, dealers          
 or traders in securities; |

| · | “controlled                                                                                                       
 foreign corporations,” “passive foreign investment companies,” and corporations that accumulate earnings to avoid 
 U.S. federal income tax;                                                                                          |

| · | S corporations,                                                                                                                      
 partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes (and investors therein); |

| · | tax-exempt                                   
 organizations or governmental organizations; |

| · | persons subject                                                                                                              
 to special tax accounting rules as a result of any item of gross income with respect to our capital stock or debt securities 
 being taken into account in an “applicable financial statement” (as defined in the Code);                                    |

| · | persons deemed                                                                                       
 to sell our capital stock or debt securities under the constructive sale provisions of the Code; and |

| · | persons who                                                                                                           
 hold or receive our capital stock pursuant to the exercise of any employee stock option or otherwise as compensation. |

THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED AS TAX ADVICE. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP AND DISPOSITION OF OUR CAPITAL STOCK OR DEBT SECURITIES ARISING UNDER OTHER U.S. F