Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 87

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 87
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. federal income tax purposes.

Sale or Other Taxable Disposition

A U.S. Holder will recognize
gain or loss on the sale, exchange, redemption, retirement or other taxable disposition of a debt security. The amount of such gain or
loss generally will be equal to the difference between the amount received for the debt security in cash or other property valued at
fair market value (less amounts attributable to any accrued but unpaid interest, which will be taxable as interest to the extent not
previously included in income) and the U.S. Holder’s adjusted tax basis in the debt security. A U.S. Holder’s adjusted
tax basis in a debt security generally will be equal to the amount the U.S. Holder paid for the debt security. Any gain or loss
generally will be capital gain or loss, and will be long-term capital gain or loss if the U.S. Holder has held the debt security
for more than one year at the time of such sale or other taxable disposition. Otherwise, such gain or loss will be short-term capital
gain or loss. Long-term capital gains recognized by certain non-corporate U.S. Holders, including individuals, generally will be
taxable at reduced rates. The deductibility of capital losses is subject to limitations.

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Non-U.S. Holders

Payments of Interest

Interest paid on a debt security
to a Non-U.S. Holder that is not effectively connected with the Non-U.S. Holder’s conduct of a trade or business within
the United States generally will not be subject to U.S. federal income tax, or withholding tax, provided that:

| · | the                                                                                         
 Non-U.S. Holder does not, actually or constructively, own 10% or more of the total combined 
 voting power of all classes of our voting stock;                                            |

| · | the                                                                                  
 Non-U.S. Holder is not a controlled foreign corporation related to us through actual 
 or constructive stock ownership; and                                                 |

| · | either                                                                                          
 (1) the Non-U.S. Holder certifies in a statement provided to the applicable withholding         
 agent under penalties of perjury that it is not a United States person and provides its name    
 and address; (2) a securities clearing organization, bank or other financial institution        
 that holds customers’ securities in the ordinary course of its trade or business and            
 holds the debt security on behalf of the Non-U.S. Holder certifies to the applicable            
 withholding agent under penalties