CAP Practice Questions - CAP Chartered Advisor In Philanthropy Exam

What is the primary tax benefit of the bunching strategy for charitable giving?

It allows the donor to avoid capital gains tax It concentrates multiple years of charitable gifts into one year so the donor can itemize and exceed the standard deduction It eliminates the AGI limitation on charitable deductions It converts ordinary income into capital gains

Correct Answer:

It concentrates multiple years of charitable gifts into one year so the donor can itemize and exceed the standard deduction

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