The reduced deduction election enables a taxpayer to move from the 30%-of-AGI limitation to the 50%-of-AGI limitation.

Question

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The statement is true. The reduced deduction election allows taxpayers to choose to lower their charitable contribution deduction limit from 30% of their adjusted gross income (AGI) to 50% of their AGI. This can be beneficial for taxpayers who want to donate a larger portion of their income to charity.

The Reduced Deduction Election Enables a Taxpayer to Move from the 30%-Of-AGI