Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 124

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 124
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 tax advisors to determine the impact of U.S. federal, state, local and non-U.S. income and other tax laws and any applicable
tax treaty on the purchase, ownership and disposition of shares of our capital stock, including any reporting requirements.

Distributions Generally

Distributions (including
any taxable stock distributions) that are neither attributable to gains from sales or exchanges by us of United States real property
interests, or USRPIs, nor designated by us as capital gain dividends (except as described below) will be treated as dividends of ordinary
income to the extent that they are made out of our current or accumulated earnings and profits. Such distributions ordinarily will be
subject to withholding of U.S. federal income tax at a 30% rate or such lower rate as may be specified by an applicable income tax treaty,
unless the distributions are 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). Under certain treaties, however, lower withholding rates generally applicable to dividends
do not apply to dividends from a REIT. In addition, any portion of the dividends paid to Non-U.S. Holders that are treated as excess
inclusion income will not be eligible for exemption from the 30% withholding tax or a reduced treaty rate. See “Material U.S. Federal
Income Tax Considerations—Taxation of the Company—Excess Inclusion Income.” Certain certification and disclosure requirements
must be satisfied for a Non-U.S. Holder to be exempt from withholding under the effectively connected income exemption. Dividends that
are treated as effectively connected with a U.S. trade or business (through a U.S. permanent establishment, where applicable) generally
will not be subject to withholding but will be subject to U.S. federal income tax on a net basis at the regular rates, in the same manner
as dividends paid to U.S. Holders are subject to U.S. federal income tax. Any such dividends received by a Non-U.S. Holder that is a
corporation may also be subject to an additional branch profits tax at a 30% rate (applicable after deducting 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.

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Except