Recapture Details
The goal of the alimony recapture rules are to disallow an
deduction if a property
settlement (which is not deductible) is disguised as
.
However, the rules are mathematical and apply whether or not there was any such intent.
The general idea is to recapture some of the deduction if the second-to-third year shows a
decline of more than $15,000, and also if the first to average-of-second-and-third year shows
a similar decline of $15,000.
Click
here
for an example of calculating recapture.
Email this page on to a friend.
Disclaimer: We are not giving legal advice. No warranties. We disclaim all legal liability. More...
| 
