Recapture for alimony is when the payor (who previously deducted alimony expenses from income) must go back to the previous 2 years and claim a portion of the previously deducted amount as taxable income in the third year. And the receiver gets to deduct the same portion of previously taxed income.
This takes place when there is a sharp decline in alimony payments over a 3 year period.
It's a complex calculation, so it may not be easily translated via forum.
To claim a recapture in the third year, look at the previous 2 years as well.
step 1. Take year 2 payment, subtract 15k = year 2 recapture
step 2. calculate the average of the year 2 and year 3 payments ((year 2 – 15k + year 3)/2)
step 3. take year 1 payment, subtract 15k,
then also and subtract year2/3 average = year 1 recapture
year 2 recapture + year 1 recapture are both claimed in Year 3 🙂
A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*
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