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We believe our clients deserve to keep and grow the wealth they’ve spent a lifetime building.

We built Telos when we observed an unmet need for clients who were selling businesses, real estate, or other highly appreciated assets. We recognized that they were unable to exit their ownership positions without their wealth either eroded through exorbitant taxes or jeopardized through owner financing risks.

Existing market options did not work.

When selling their assets, our clients only had the following options available.

  • Pay capital gains taxes on their sale proceeds. This typically resulted in an immediate 37% loss of their wealth.
  • Carry back an installment note on the sale. This exposed clients to the risk of buyer default and possible loss of both their sales proceeds and their asset.
  • Use a trust structure to defer the taxes. Unfortunately, these trust structures are not compliant with IRS code and ultimately exposed clients to the same 37% tax bill now compounded by penalties and interest.

A proven solution driven by client need.

At Telos Capital, we help business owners protect the wealth they’ve built in their business through a 453 Exchange. A 453 Exchange provides:

Tax Deferral

Tax Deferral

A 453 Exchange keeps your wealth working for you while fully complying with IRS guidelines.

Wealth Protection

Security

As a principal, Telos Capital is well capitalized with substantial equity to ensure the security of your 453 exchange.

Increased Income

Strong Income

A 453 Exchange provides passive income to our clients from their pre-tax sale proceeds.

Flexible Solutions

Flexibility

A 453 Exchange can be fully tailored to each client’s unique income, tax and estate planning goals.

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A 453 Exchange is accomplished by utilizing section 453 of the tax code, which allows a business seller to use an installment structure to defer their capital gains taxes. A 453 Exchange provides the benefits of tax deferral without the risks of buyer default or noncompliant trust structures.

How It Works

Step 1

The Principal issues an installment note to the Seller in exchange for the business.

Step 2

Seller receives monthly installment payments from their pretax proceeds and qualifies under IRS Code 453 to defer their capital gains taxes on their principal until it is returned.

Who We Can Help

Business Owners

For those who are selling a business, partnership interest, or private stock...

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Real Estate Or Other Asset Owners

For those who are selling investment real estate, a primary or secondary residence, or any other highly appreciated illiquid asset...

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Who We Are

Telos Capital helps business and real estate owners defer taxes and create a powerful income stream from the lifetime of work they’ve invested in their business or assets.

How can Telos Capital help you?

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