Redwood Trust Announces Dividend Distribution Tax Information for 2024
Shareholders should check the tax statements they receive from their brokerage firms to confirm the Redwood dividend distribution information reported in those statements conforms to the information reported here. Set forth in this press release are Redwood's expectations with respect to the treatment of the Company’s 2024 dividend distributions for federal income tax purposes. Shareholders should consult their tax advisors to determine the amount of taxes that should be paid on Redwood's dividend distributions for federal, state, and other income tax purposes.
All common stock dividend distributions paid during 2024 are reportable on shareholders' 2024 federal income tax returns. Under the federal income tax rules applicable to real estate investment trusts (“REITs”), Redwood's 2024 common stock dividend distributions are expected to be characterized for income tax purposes as
Preferred stock dividend distributions paid in April, July, and October 2024 and in January 2025 are reportable on shareholders' 2024 federal income tax returns. Redwood's 2024 preferred stock dividend distributions are expected to be characterized for federal income tax purposes as
Due to Redwood’s classification as a REIT, the portion of both the 2024 common and preferred dividend distributions that can be characterized as qualified dividends is limited to Redwood’s qualified dividend income for the year. The amount characterized as ordinary income under the applicable federal income tax rules are generally taxed at full ordinary income tax rates.
Individual taxpayers may generally take a deduction from taxable income of
For shareholders that are corporations, Redwood's dividend distributions are not generally eligible for the corporate dividends-received deduction or the
The tables below provide more detailed information on the expected federal income tax characterization for each of Redwood's common and preferred stock dividend distributions that were attributable to 2024.
Common Stock (CUSIP 758075 40 2)
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Record
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Payable
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Total
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Box 1a
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Box 1b
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Box 2a
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Box 3
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Box 5
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03/21/2024 |
03/28/2024 |
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06/21/2024 |
06/28/2024 |
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09/23/2024 |
09/30/2024 |
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12/23/2024 |
12/30/2024 |
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Total |
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Preferred Stock (CUSIP 758075 80 8)
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Record
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Payable
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Total
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Box 1a
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Box 1b
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Box 2a
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Box 3
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Box 5
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04/01/2024 |
04/15/2024 |
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07/01/2024 |
07/15/2024 |
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10/01/2024 |
10/15/2024 |
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01/01/2025 |
01/15/2025 |
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Total |
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No portion of Redwood's 2024 common or preferred dividend distributions is expected to consist of unrelated business taxable income (“UBTI”), subject to specialized tax reporting and other rules applicable for certain tax-exempt investors.
If you have questions, please consult your tax advisor for further guidance.
About Redwood Trust
Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit where we provide liquidity to growing segments of the
Forward-Looking Statements: This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements related to Redwood’s expectations with respect to the treatment of our 2024 dividend distributions for federal income tax purposes. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as "anticipate," "estimate," "will," "should," "expect," "believe," "intend," "seek," "plan" and similar expressions or their negative forms, or by references to strategy, plans, or intentions. These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in our Annual Report on Form 10-K for the year ended December 31, 2023 under the caption "Risk Factors." Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected may be described from time to time in reports we file with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250129812263/en/
Kaitlyn Mauritz
Head of Investor Relations
Phone: 866-269-4976
Email: investorrelations@redwoodtrust.com
Source: Redwood Trust, Inc.