**Detailed Answer**

(d) The requirement is to determine the amount of
alimony recapture that must be included in Bob’s gross income
for 2012. Alimony recapture may occur if alimony payments
sharply decline in the second and third years that payments are
made. The payor must report the recaptured alimony as gross
income in the third year, and the payee is allowed a deduction for
the same amount. Recapture for the second year (2011) occurs
to the extent that the alimony paid in the second year ($20,000)
exceeds the alimony paid in the third year ($0) by more than
$15,000 [i.e., $20,000 – ($0 + $15,000) = $5,000 of recapture].
Recapture for the first year (2010) occurs to the extent that
the alimony paid in the first year ($50,000) exceeds the average
alimony paid in the second and third years by more than $15,000.
For this purpose, the alimony paid in the second year ($20,000)
must be reduced by the amount of recapture for that year
($5,000).
First year (2010) payment $50,000
Second year (2011) payment
($20,000 – $5,000) $15,000
Third year (2012) payment + 0
Total $15,000
÷ 2 (7,500)
(15,000)
Recapture for first year (2010) $ 27,500
Thus, the total recapture to be included in Bob’s gross income for
2012 is $5,000 + $27,500 = $32,500.