Alimony recapture is the IRS's attempt to uncover and penalize front-loaded property transfers disguised as alimony payments. I.R.C. § 71(f). In particular, the IRS looks at the first three years of alimony payments and notes if the amounts seem to be decreasing. When that's the case, the table is turned on the alimony payer: The payer includes the recapture amount in income (previously deducted) and the recipient gets an above-the-line deduction (previously included in income).
Given the alimony payment amount in the first three years, this Excel workbook figures if alimony needs to be recaptured, and if so, what amount.
As always, doublecheck this workbook's calculations.
Given the alimony payment amount in the first three years, this Excel workbook figures if alimony needs to be recaptured, and if so, what amount.
As always, doublecheck this workbook's calculations.
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