If the Alimony Recapture Rules Apply, the Recipient of the Alimony

question 75

True/False

If the alimony recapture rules apply, the recipient of the alimony decreases his or her AGI by a portion of the amount included in gross income as alimony in a prior year or years.

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Definitions:

Pre-Acquisition Entry

An accounting entry made to record the assets and liabilities of a company before it is officially acquired by another entity.

Direct Non-Controlling Interest

A portion of equity interest in a subsidiary not directly held by the parent company but rather through a direct subsidiary.

Indirect NCI

Stands for Indirect Non-Controlling Interest, which refers to the ownership interest in a company held by investors that do not have control or significant influence over the company.

Direct NCI

Direct non-controlling interest (NCI) refers to the portion of equity in a subsidiary not held directly by the parent company, giving those external shareholders a proportional share of the entity's net assets and profits.