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 recaptured amounts from the second and first years will be treated as follows in the third year:

Question

Quizplus · Accepted Answer

The recapture rules for alimony payments are designed to prevent excessive front-loading of alimony payments. The recaptured amount is added to the payer's income and subtracted from the recipient's income. In this case, since the payments decrease by more than $15,000 each year, the recapture rules apply, leading to an increase in W's (the recipient's) gross income and an increase in H's (the payer's) deduction for adjusted gross income (A.G.I.).

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 $\quad \$ 90,000$