Each year, Tom and Cindy Bates report itemized deductions of $10,000, including a $4,000 pledge payment to

Question:

Each year, Tom and Cindy Bates report itemized deductions of $10,000, including a $4,000 pledge payment to their church. Upon the advice of a friend, they do the following: in early January 2016, they pay their 2015 pledge; during 2016, they pay the 2016 pledge; and in late December 2016, they prepay their 2017 pledge.
a. Explain what the Bateses are trying to accomplish.
b. What will be the tax saving if their marginal tax bracket is 25% for all three years? (Assume that the standard deduction amounts for 2016 and 2017 are the same.)
c. Write a letter to Tom and Cindy Bates (8212 Bridle Court, Reston, VA 20194) summarizing your analysis.