The Alimony Recapture Rules Are Intended To

question 51

Multiple Choice

The alimony recapture rules are intended to:

• A)Assist former spouses in collecting alimony when the other spouse moves to another state.
• B)Prevent tax deductions for property divisions.
• C)Reduce the net cash outflow for the payor.
• D)Distinguish child support payments from alimony.
• E)None of these.

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Definitions:

Marginal Revenue

The additional revenue that is gained from selling one more unit of a good or service.

Purely Competitive Firm

An enterprise that operates in a perfectly competitive market, where it is a price taker due to the homogeneity of products and the presence of many buyers and sellers.

Market Price

The market rate at which an asset or service can currently be acquired or disposed of.