Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 82

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 82
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21% U.S. withholding tax described above, if 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. Instead, such distributions generally
will be treated as ordinary dividend distributions and subject to withholding in the manner described above with respect to ordinary
dividends. In addition, distributions to certain non-U.S. publicly traded shareholders that meet certain record-keeping and other
requirements, or 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, distributions to certain
“qualified foreign pension funds” or entities all of the interests of which are held by such “qualified foreign pension
funds” are exempt from FIRPTA. Non-U.S. Holders should consult their tax advisors regarding the application of these rules.

Retention of Net Capital Gains

Although the law is not clear
on the matter, it appears that amounts we designate as retained net capital gains in respect of our capital stock should be treated with
respect to Non-U.S. Holders as actual distributions of capital gain dividends. Under this approach, the Non-U.S. Holders may
be able to offset as a credit against their U.S. federal income tax liability their proportionate share of the tax that we paid
on such retained net capital gains and to receive from the IRS a refund to the extent their proportionate share of such tax that we paid
exceeds their actual U.S. federal income tax liability. If we were to designate any portion of our net capital gain as retained
net capital gain, Non-U.S. Holders should consult their tax advisors regarding the taxation of such retained net capital gain.

Sale of Our Capital Stock

Except as described below
under “Material U.S. Federal Income Tax Considerations—Federal Income Tax Considerations for Holders of Our Capital
Stock and Debt Securities—Taxation of Non-U.S. Holders of Our Capital Stock—Redemption or Repurchase by Us,” gain
realized by a Non-U.S. Holder upon the sale, exchange or other taxable disposition of our capital stock generally will not be subject
to U.S. federal income tax unless such stock constitutes a USRPI. In general, stock of a domestic corporation that constitutes a
“United States real property holding corporation”, or a “USRPH