Kelsey Is a Cash-Basis,calendar-Year Taxpayer

Essay

Kelsey is a cash-basis,calendar-year taxpayer.Her salary is $30,000,and she is single.She plans to purchase a residence in 2017.She anticipates her property taxes and interest will total $8,000 in 2017.Each year,Kelsey contributes approximately $1,500 to charity.Her other itemized deductions total $2,000.For purposes of this problem,assume 2016 tax rates,exemptions,and standard deductions are the same as 2017.
a.What will her gross tax be in 2016 and 2017 if she contributes $1,500 to charity in each year?
b.What will her gross tax be in 2016 and 2017 if she contributes $3,000 to charity in 2016 but makes no contribution in 2017?
c.What will her gross tax be in 2016 and 2017 if she makes no contribution in 2016 but contributes $3,000 to charity in 2017?
d.Why does alternative "c" yield the lowest tax?