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Each year, the Hundleys normally have itemized deductions of $9,500, including a $3,600 pledge payment to their church. Upon the advice of a friend,...
9. Each year, the Hundleys normally have itemized deductions of $9,500, including a $3,600 pledge payment to their church. Upon the advice of a friend, they do the following: in early January 2010, they pay their pledge for 2009; during the 2010, they pay the pledge for 2010; and in late December 2010, they prepay their pledge for 2011.a. Explain what the Hundleys are trying to accomplish.b. What will be the tax saving if their marginal tax bracket is 25% for all three years? (Assume the standard deduction amounts for 2010 and 2011 are the same.)
Itemised DecutionIncludes Pledge to Church 95003600Jan-10 During 2010In December a Here Hundley is normally trying to save his tax during 2010. However,donation is allowed on payment basis so...