Alimony recapture applies when payments in the third year decrease by more than 15,000 from the second year as a result of:
a. Correct. Just because the payer spouse has payments reduced because he or she is less able to provide support does not avoid recapture.
b. Incorrect. There is no recapture if the reduction is due to the death of the recipient spouse.
c. Incorrect. There is no recapture if the reduction is due to the remarriage of the recipient spouse.
d. Incorrect. There is no recapture if alimony payments are tied to a portion of business income and that business becomes defunct.
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