Alimony recapture

Question 1

Alimony recapture

Answer 1

if the payor spouse wants to deduct spousal support in excess of $15,000 without
being subject to recapture, the payments must last for at least three years and they may not
decrease by more than $15,000 over the first three post-separation years.

To the extent that the
payor spouse has paid “excess spousal support,” the excess spousal support is to be recaptured
in the payor spouse’s taxable income beginning in the third year post-separation IRC §71(f)(1)
(A). The payee spouse is entitled to deduct the recaptured amount from gross income in the
third post-separation year [IRC §71(f)(1)(B)].