Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 90

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 90
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 of any partnership or disregarded entity for U.S. federal income tax purposes in which it owns an interest, would
be treated as our assets and items of income for purposes of applying the requirements described in this discussion, including the gross
income and asset tests described below. For purposes of the REIT qualification tests, the treatment of our ownership of partnerships
or limited liability companies that are, in each case, treated as disregarded entities for U.S. federal income tax purposes is generally
the same as described below with respect to qualified REIT subsidiaries.

We generally have control
of our subsidiary partnerships and intend to operate them in a manner consistent with the requirements for our qualification as a REIT.
If we become a limited partner or non-managing member in any partnership and such entity takes or expects to take actions that could
jeopardize our status as a REIT or require us to pay tax, we may be forced to dispose of our interest in such entity. In addition, it
is possible that a partnership could take an action which could cause us to fail a gross income or asset test, and that we would not
become aware of such action in time to dispose of our interest in the partnership or take other corrective action on a timely basis.
In such a case, we could fail to qualify as a REIT unless we were entitled to relief, as described below.

From time to time, we may
own wholly owned subsidiaries that are treated as “qualified REIT subsidiaries” under the Code. A corporation (or other entity
treated as a corporation for U.S. federal income tax purposes) qualifies as our qualified REIT subsidiary if we own 100% of the corporation’s
outstanding stock and do not elect with the subsidiary to treat it as a TRS, as described below. A qualified REIT subsidiary is not treated
as a separate corporation, and all assets, liabilities and items of income, gain, loss, deduction and credit of a qualified REIT subsidiary
are treated as assets, liabilities and items of income, gain, loss, deduction and credit of the parent REIT for all purposes under the
Code, including all REIT qualification tests. Thus, in applying the U.S. federal income tax requirements described in this discussion,
any qualified REIT subsidiaries we own are ignored, and all assets, liabilities and items of income, gain, loss, deduction and credit
of such corporations are treated as our assets, liabilities and items of income, gain, loss, deduction and credit. A