The Alimony Recapture Rules Are Intended To

question 28

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 the above.

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Definitions:

Accounts Receivable

Financial obligations customers have towards a business for utilized or received goods and services that remain unpaid.

Creditworthy Customers

Clients deemed capable of paying back credit extended to them due to their solid financial standing.

Prompt Payment

The act of settling a transaction or invoice on or before the due date.

Financing Cost

The interest and other costs incurred by a company to borrow funds or access other forms of financing.