HOMELESS 2 HOMEOWNERSHIP
“PENTHOUSE OFFER”
Some in the real estate industry, including the IRS, call this a “Bargain Sale.” We at Homeless 2 Homeownership refer to it as a “Penthouse Sale” because all parties—including the seller, Homeless 2 Homeownership, and the community—benefit.
A Penthouse Offer is Homeless 2 Homeownership’s cash + charitable donation offer to acquire real estate, including hard-to-sell or distressed properties with liens or a cloudy deed.
The seller receives:
● Cash at closing
● A charitable tax donation
● Tax benefits of up to 62.8% of the donation may be used to eliminate applicable capital gains
● Up to 30% of Adjusted Gross Income (AGI) may be used in the year of the sale, with any unused allowable deduction carried forward for up to five additional years—a total of up to six tax years
● No closing costs when paid by H2H
● Form 8283 acknowledgment when applicable
This structure may provide the seller with greater overall financial value than accepting a traditional discounted cash offer.
Side-by-Side Advantage Comparison
Effective Money Received Breakdown
Traditional Discounted Cash Offer
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Cash Offer: $360,000
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Less Realtor Commission (5%): -$18,000
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Less Property Prep: -$6,000
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Less Holding Costs: -$12,000
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Less Capital Gains Tax (20%): -$72,000
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Actual Net Cash in Hand: $252,000 [1]
Homeless 2 Homeownership Penthouse Offer
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Cash at Closing: $250,000
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62.8% of Tax Donation: $251,200
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Effective Dollars to Seller: $501,200
