1. The situation is good for you to move and laugh now.

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Is this sentence grammatical? Does 'for you to move and laugh now' modify 'good'? Thank you for your help.

"for you" is a prepositional phrase.

https://www.englishclub.com/grammar/prepositions.htm

"to move and laugh now" is an infinitive phrase.
https://englishsentences.com/infinitive-phrase/

Let me know what you decide.