Which of the following payment streams would result in excess alimony that would be recaptured by the payer?
a) Year 1 - $40,000,
Year 2 - $50,000
Year 3 - $70,000
b) Year 1 - $70,000
Year 2 - $50,000
Year 3 - $50,000
Year 4 - $30,000
Year 5 - $65,000
c) Year 1 - $40,000
Year 2 - $50,000
Year 3 - $35,000
Year 4 - $10,000
Year 5 - $10,000
d) Year 1 - $60,000
Year 2 - $50,000
Year 3 - $40,000
b) Year 1 - $70,000 Year 2 - $50,000 Year 3 - $50,000 Year 4 - $30,000 Year 5 - $65,000
Alimony recapture can only occur if the payments drop by more than $15,000 from year 1 to year 2, or year 2 to year 3. In this scenario, the payment from year 1 to year 2 drops by $20,000, resulting in alimony recapture in the third year. Years 4 and 5 are ignored for recapture purposes.
Alimony recapture can only occur if the payments drop by more than $15,000 from year 1 to year 2, or year 2 to year 3. Alimony recapture does not apply when payments increase in both years.
Alimony recapture can only occur if the payments drop by more than $15,000 from year 1 to year 2, or year 2 to year 3. In this scenario, the payment drops by exactly $15,000 from year 2 to year 3, which does not result in alimony recapture. Years 4 and 5 are ignored for recapture purposes.
Alimony recapture can only occur if the payments drop by more than $15,000 from year 1 to year 2, or year 2 to year 3. In this scenario, the payments drop by $10,000 from year 1 to year 2, and$10,000 from year 2 to year 3. This does not result in alimony recapture.