Company: TWO-PC
Filing Date: 2025-11-06
Form Type: S-3ASR
Source: 0001104659-25-107870
Chunk: 62

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-11-06
Form: S-3ASR
Chunk 62
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 feature of the Plan. Unless an alternative method is elected, a U.S. stockholder’s tax basis in the shares of common stock acquired under the direct share purchase feature of the Plan generally will equal the amount of the payment plus any brokerage commissions paid by us, if any, as described above.

A U.S. stockholder’s holding period for the shares of our common stock acquired under either program of the Plan will begin on the day following the date such shares were acquired for such holder’s account. Consequently, shares of our common stock purchased in different quarters will have different holding periods.

A U.S. stockholder will not realize any gain or loss for certificates received for whole shares of our common stock credited to the holder’s account, either upon the U.S. stockholder’s request, when the holder withdraws from the Plan or if the Plan terminates. However, a U.S. stockholder will recognize gain or loss when whole shares of our common stock are sold or exchanged. A U.S. stockholder will also recognize gain or loss upon receipt, following termination of participation in the Plan, of a cash payment for any fractional share of our common stock. The amount of the U.S. stockholder’s gain or loss will equal the difference between the amount such holder receives for the shares or fractional shares of our common stock, net of any costs of sale paid by such U.S. stockholder, and such U.S. stockholder’s adjusted tax basis of such shares.

All costs of administering the Plan, except for brokerage commissions paid by us, if any, when shares are purchased in the open market and costs related to a U.S. stockholder’s voluntary selling of shares and/or withdrawal from the Plan, will be paid by us. Consistent with the conclusion reached by the IRS in certain private letter rulings issued to other REITs, we intend to take the position that these administrative costs do not constitute a distribution which is either taxable to a U.S. stockholder or which would reduce a U.S. stockholder’s basis in its shares of common stock. However, because the private letter rulings were not issued to us, we have no legal right to rely on its conclusions. Thus, it is possible that the IRS might view a U.S. stockholder’s share of the costs as constituting a taxable distribution to the U.S. stockholder and/or a distribution which reduces the U.S. stockholder’s basis in its shares. For this or other reasons, we may in the future take a different position with respect to