Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 71

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 71
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, OWNERSHIP AND DISPOSITION OF OUR CAPITAL
STOCK OR DEBT SECURITIES ARISING UNDER OTHER U.S. FEDERAL TAX LAWS (INCLUDING ESTATE AND GIFT TAX LAWS), UNDER THE LAWS OF ANY STATE,
LOCAL OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE TAX TREATY.

For purposes of this discussion,
a “U.S. Holder” is a beneficial owner of our capital stock or debt securities that, for U.S. federal income tax
purposes, is or is treated as:

| · | an                                                            
 individual who is a citizen or resident of the United States; |

| · | a                                                                                        
 corporation created or organized under the laws of the United States, any state thereof, 
 or the District of Columbia;                                                             |

| · | an                                                                                  
 estate, the income of which is subject to U.S. federal income tax regardless of its 
 source; or                                                                          |

| · | a                                                                                          
 trust that (1) is subject to the primary supervision of a U.S. court and the control       
 of one or more “United States persons” (within the meaning of Section 7701(a)(30)          
 of the Code) or (2) has a valid election in effect to be treated as a United States person 
 for U.S. federal income tax purposes.                                                      |

For purposes of this discussion,
a “Non-U.S. Holder” is any beneficial owner of our capital stock or debt securities that is neither a U.S. Holder
nor an entity treated as a partnership for U.S. federal income tax purposes.

If an entity treated as a
partnership for U.S. federal income tax purposes holds our capital stock or debt securities, the tax treatment of a partner in the
partnership will depend on the status of the partner, the activities of the partnership and certain determinations made at the partner
level. Accordingly, partnerships holding our capital stock or debt securities and the partners in such partnerships should consult their
tax advisors regarding the U.S. federal income tax consequences to them.

Taxation of Taxable U.S. Holders of Our Capital Stock

Distributions Generally

Distributions out of our
current or accumulated earnings and profits will be treated as dividends and, other than with respect to capital gain dividends and certain
amounts which have previously been subject to corporate level tax, as discussed below, will be taxable to our taxable U.S. Holders
as ordinary income when actually or constructively received