Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 86

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 86
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. We have not requested, and do not plan to request, any rulings from the IRS that we
qualify as a REIT, and the statements in this prospectus are not binding on the IRS or any court. Thus, we can provide no assurance that
the tax considerations contained in this discussion will not be challenged by the IRS or will be sustained by a court if challenged by
the IRS. This summary does not discuss any state, local or non-U.S. tax consequences, or any tax consequences arising under any U.S.
federal tax laws other than U.S. federal income tax laws, associated with the purchase, ownership or disposition of our capital stock
or debt securities, or our election to be taxed as a REIT.

You are urged to consult your tax advisor regarding the tax consequences to you of:

| · | the purchase,                                                                                                                       
 ownership and disposition of our capital stock or debt securities, including the U.S. federal, state, local, non-U.S. and other tax 
 consequences;                                                                                                                       |

| · | our election to be taxed as a                  
 REIT for U.S. federal income tax purposes; and |

| · | potential changes in applicable 
 tax laws.                       |

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Taxation of the Company

General

We have elected to be taxed
as a REIT under Sections 856 through 860 of the Code commencing with our taxable year ended December 31, 1994. We believe that we
have been organized and have operated in a manner that has allowed us to qualify for taxation as a REIT under the Code commencing with
such taxable year, and we intend to continue to be organized and to operate in this manner. However, qualification and taxation as a
REIT depend upon our ability to meet the various qualification tests imposed under the Code, including through actual operating results,
asset composition, distribution levels and diversity of stock ownership. Accordingly, no assurance can be given that we have been organized
and have operated, or will continue to be organized and operate, in a manner so as to qualify or remain qualified as a REIT. See “Material
U.S. Federal Income Tax Considerations—Taxation of the Company—Failure to Qualify” for potential tax consequences if
we fail to qualify as a REIT.

Latham & Watkins
LLP has acted as our tax counsel in connection with this prospectus and our U.S. federal income tax status as a REIT. Latham &
Wat