EOL Capital

What is wrong with simply telling my accountant the asset is worth nothing?

In most cases, a capital loss must be “realized” in order to be “recognized”. The issue is providing sufficient proof of sale before claiming realized loss for tax purposes complying with tax authorities’ regulations and requirements.

EOL Capital irrevocable share purchase agreement is definitely good document that support this claim. Ask yourself, how do you prove it is worthless and became worthless in the current taxable year? Selling your “worthless asset” to EOL Capital provides documentation that your loss is realized in that year.

Why is selling to EOL Capital better than selling to a friend, a family member or a lawyer for $1.00?

The first question you need to answer is selling to a friend or family member is really “negotiated”, arms-length sale? EOL Capital provides a valid Share Purchase Agreement and share transfer deed you can use to demonstrate an arm’s-length sale, A “True sale” with no suspicion or appearance of buy-back rights.

Our documentation can be especially important if you have a requirement for audited financial statements.

Does your friend truly complete the purchase of an asset having right-of-first-refusal or co-sale restrictions?
Will he be an acceptable buyer to the Company?
Will he warrant that he is an accredited investor?

Our online process saves you time and hassle. You also can save money on attorney’s fees.

What can i expect in terms of purchase price?

For active companies the price can’t be estimated off hand and require elaborated and current information in order to provide a price for your shares.

For companies that are downsizing and have high probability of shutting down the price will probably be in the range of $1 to $100 but absolutely depend on the assessment we do based on all the specific information provided and available.

What information and documents are required to complete the sale?

Target/Sold company name, address and contact person details.
quantity and class of shares sold.
Ownership Proof. (share certificate/companies registrar report)

Is the sale binding and irrevocable?

Following signing the share purchase agreement, the share transfer deed and loss share affidavit, the sale would be binding and irrevocable, subject to ROFR , transfer restrictions and other shareholders rights.

Are there any other actions required to complete the sale?

No. Unless you direct us differently, we will be sending the share transfer deed to the contact person at the target/sold company.

How do I get the counter-signed SPA?

Right after you sign and process the service fee you would get the counter-signed agreement by return email.

Are there any other fees?

No. The service fees are the only fees.

FAQ