Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 129

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 129
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 the sale or other taxable disposition or the Non-U.S. Holder’s holding period.                                       |

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In addition, dispositions
of our capital stock by qualified shareholders are exempt from FIRPTA, except to the extent owners of such qualified shareholders that
are not also qualified shareholders own, actually or constructively, more than 10% of our capital stock. Furthermore, dispositions of
our capital stock by “qualified foreign pension funds” or entities all of the interests of which are held by “qualified
foreign pension funds” are exempt from FIRPTA. Non-U.S. Holders should consult their tax advisors regarding the application of
these rules.

Notwithstanding the foregoing,
gain from the sale, exchange or other taxable disposition of our capital stock not otherwise subject to FIRPTA will be taxable to a Non-U.S.
Holder if either (a) the investment in our capital stock is treated as effectively connected with the conduct by the Non-U.S. Holder
of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a
permanent establishment in the United States to which such gain is attributable), in which case the Non-U.S. Holder will be subject to
the same treatment as U.S. Holders with respect to such gain, except that a Non-U.S. Holder that is a corporation may also be subject
to the 30% branch profits tax (or such lower rate as may be specified by an applicable income tax treaty) on such gain, as adjusted for
certain items, or (b) 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 a 30% tax 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 the 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. In addition, even if we are a domestically
controlled qualified investment entity, upon disposition of our capital stock, a Non-U.S. Holder may be treated as having gain from the
sale or other taxable disposition of