### Question
How does Income Taxes define equity?


### Answer
Under *26 U.S.C. § 585*, **equity** is defined as:

> the equity of the bank as determined for Federal regulatory purposes

#### Citation:
  - *26 U.S.C. § 585*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter H-Banking Institutions > PART I-RULES OF GENERAL APPLICA-**

