Each year, Tom and Cindy Bates normally have itemized deductions of $20,000, including a $4,000 pledge payment to their church. Upon the advice of a friend, they do the following: in early January 2018, they pay their pledge for 2017; during 2018, they pay the pledge for 2018; and in late December 2018, they prepay their pledge for 2019.

Explain what the Bateses are trying to accomplish.

What will be the tax saving if their marginal tax bracket is 24% for all three years? (Assume that the standard deduction amounts for 2018 and 2019 are the same.)

Write a letter to Tom and Cindy Bates (8212 Bridle Court, Reston, VA 20194) summarizing your analysis.