Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 80

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 80
---
ing U.S. federal income taxes paid on such effectively connected income) or such lower rate as
may be specified by an applicable income tax treaty.

Except as otherwise provided
below, we expect to withhold U.S. federal income tax at the rate of 30% on any distributions made to a Non-U.S. Holder unless:

| · | a                                                                                          
 lower treaty rate applies and the Non-U.S. Holder furnishes an IRS Form W-8BEN or W-8BEN-E 
 (or other applicable documentation) evidencing eligibility for that reduced treaty rate;   
 or                                                                                         |

| · | the                                                                                       
 Non-U.S. Holder furnishes an IRS Form W-8ECI (or other applicable documentation) claiming 
 that the distribution is income effectively connected with the Non-U.S. Holder’s          
 trade or business.                                                                        |

Distributions in excess of
our current and accumulated earnings and profits will not be taxable to a Non-U.S. Holder to the extent that such distributions
do not exceed the adjusted tax basis of the holder’s shares of our capital stock, but rather will reduce the adjusted tax basis
of such shares. To the extent that such distributions exceed the Non-U.S. Holder’s adjusted tax basis in such shares, they
will generally give rise to gain from the sale or exchange of such shares, the tax treatment of which is described below. However, such
excess distributions may be treated as dividend income for certain Non-U.S. Holders. For withholding purposes, we expect to treat
all distributions as made out of our current or accumulated earnings and profits. However, amounts withheld may be refundable if it is
subsequently determined that the distribution was, in fact, in excess of our current and accumulated earnings and profits, provided that
certain conditions are met.

Capital Gain Dividends and Distributions Attributable to a Sale or Exchange of United States Real Property Interests

Distributions to a Non-U.S. Holder
that we properly designate as capital gain dividends, other than those arising from the disposition of a USRPI, generally should not
be subject to U.S. federal income taxation, unless:

| · | 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 dividends are attributable),