Alimony payments by H to W for the first three years after divorce are as follows First year $\quad \$ 90,000$
Second year $\quad$60,000
Third year $\quad 30,000$ The recapture amount in the third year from the first year is

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The recapture amount in the third year from the first year is calculated based on the IRS rules for alimony payment decreases. The recapture rule applies when alimony payments decrease by more than $15,000 from the second to the third year or from the first to the second and third years combined. Here, the decrease from the first year ($90,000) to the third year ($30,000) is $60,000, which is more than $15,000. Therefore, the recapture amount is the difference between the first year and the average of the second and third years: $90,000 - [($60,000 + $30,000)/2] = $90,000 - $45,000 = $45,000. However, the recapture is actually about the excess payments in the first two years compared to the third, and the calculation provided was incorrect. The correct approach is to compare the payments year over year. The decrease from the first to the second year is $30,000, and from the second to the third year is $30,000. The recapture rules specifically look at the decrease from the first to the third year, which is $60,000, but considering the formula and the mistake in the explanation, the correct recapture amount involves calculating the excess payments in the first year over the average of the next two, which was not accurately described. The correct calculation should focus on the difference between the years as per IRS guidelines, which aim to prevent front-loading. The actual recapture amount is calculated by looking at the reductions from year to year and ensuring they do not exceed certain thresholds, leading to a recapture in the third year. Given the misunderstanding in the explanation, the focus should be on the specific IRS rules for calculating recapture, which involves comparing the payments from each year and ensuring they decrease in a manner that does not trigger the recapture rule.

Alimony Payments by H to W for the First Three $90,000\quad \$ 90,000$90,000

Alimony Payments by H to W for the First Three $\quad \$ 90,000$