### Question
How is the "insolvent" defined?


### Answer
The term **insolvent** is defined in *26 U.S.C. § 58* as follows -

> the excess of liabilities over the fair market value of assets

#### Citation:
  - *26 U.S.C. § 58*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART VI-ALTERNATIVE MINIMUM TAX**

