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Something You Might Want to Do BEFORE You Kill Your Company

ET Brutus logo

Although failure of a company is no fun, this morning I received an e-mail on this topic that made me smile. Sent with the subject line “Sell Those Dogs!”, the e-mail discusses how ET Brutus* buys the securities of dead or dying companies so owners can recognize losses for tax purposes.

The following excerpts from the ET Brutus website summarize the company’s value proposition:

ET Brutus helps private equity investors easily and legally recognize investment losses in the tax year of their choice. Specifically, it purchases stock of dead or dying companies for $1 plus a small service fee of $25 per position so the investor can recognize the tax loss.

By selling your interests to ET Brutus, you have a provable legal event that allows the tax loss to be recognized. Some companies may take a year or more to officially close. With ET Brutus, you can recognize the loss in the tax year of your choice.

I’m not a tax expert, so I don’t offer tax advice. If you’re considering such a transaction, check first with your tax advisor.

* If you do not catch the pun in this company’s name, check out Wikipedia’s discussion of “Et tu, Brute?”, then look closely at the logo, above.

Related post: How to Kill Your Company when that’s the Only Choice

Dana H. Shultz, Attorney at Law  +1 510-547-0545  dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.

Categories
Business Entities, Tax

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