Your client, Mr. and Mrs. Jones, have asked you about a $120,000 cash charitable contribution they have made to their church during 2019. They have heard that the new tax law has changed some of the rules about itemized deductions and charitable contribution limits, but they dont know the details. They have provided you with their expected adjusted gross income (before any itemized or standard deduction) for 2019 which will be $100,000. They dont know how much income they will have next year in retirement.

a) Explain to your manager how this contribution will be deducted on the clients return in 2019 and any future years if applicable.

• Be sure to discuss itemized deductions vs standard deduction

b) Explain, in easy to understand terms, how this contribution will be deducted on their returns for 2019, and any future years if applicable. Be sure to give the deduction amount in dollars.