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us/statute/26/58/c/1/A — In general · Axiom

Special rule for insolvent taxpayers

(A) In general

(A)In general#

The amount of losses to which subsection (a) or (b) applies shall be reduced by the amount (if any) by which the taxpayer is insolvent as of the close of the taxable year.

(B)Insolvent#

For purposes of this paragraph, the term “insolvent” means the excess of liabilities over the fair market value of assets.

in view

Whole section

▸rulespec code

Shown source

statutes/26/58.yaml

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This encoding covers the parent provision us/statute/26/58; no dedicated encoding exists for this exact provision yet.

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Rules

section_58_completed_loss_domain_is_satisfied

Derived

source: 26 USC 58(a), (b), and (c), bounded completed-loss domain

- name: section_58_completed_loss_domain_is_satisfied
  kind: derived
  entity: TaxUnit
  dtype: Judgment
  period: Year
  source: 26 USC 58(a), (b), and (c), bounded completed-loss domain
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/58/a
            excerpt: >-
              In determining the amount of the loss from any tax shelter farm activity, the
              adjustments of sections 56 and 57 shall apply.
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/58/b
            excerpt: the adjustments of sections 56 and 57 shall apply
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/58/b
            excerpt: >-
              the passive activity loss of a taxpayer shall be computed without regard to qualified
              housing interest
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us/statute/26/58/c/1
            excerpt: >-
              the term “insolvent” means the excess of liabilities over the fair market value of
              assets
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/58/c/1
            excerpt: >-
              The amount of losses to which subsection (a) or (b) applies shall be reduced by the
              amount (if any) by which the taxpayer is insolvent
        - path: versions[0].formula
          kind: exception
          source:
            corpus_citation_path: us/statute/26/58/c/2
            excerpt: >-
              shall (to the extent otherwise allowable) be allowed for such taxable year in
              computing alternative minimum taxable income and not treated as a loss from a tax
              shelter farm activity
  versions:
    - effective_from: '2026-01-01'
      effective_to: '2026-12-31'
      formula: |-
        (
          section_58_a_completed_loss_domain_is_satisfied
          and section_58_b_completed_loss_domain_is_satisfied
          and section_58_c_1_completed_insolvency_domain_is_satisfied
          and section_58_c_2_completed_disposition_domain_is_satisfied
        )

section_58_a_tax_shelter_farm_loss_adjustment_after_insolvency

Derived

source: 26 USC 58(a) and (c), guarded signed completed adjustment

- name: section_58_a_tax_shelter_farm_loss_adjustment_after_insolvency
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 58(a) and (c), guarded signed completed adjustment
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/58#section_58_completed_loss_domain_is_satisfied
            output: section_58_completed_loss_domain_is_satisfied
            hash: sha256:local
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/58/a
            excerpt: >-
              No loss of the taxpayer for such taxable year from any tax shelter farm activity shall
              be allowed.
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/58/c/1
            excerpt: >-
              The amount of losses to which subsection (a) or (b) applies shall be reduced by the
              amount (if any) by which the taxpayer is insolvent
        - path: versions[0].formula
          kind: exception
          source:
            corpus_citation_path: us/statute/26/58/c/2
            excerpt: >-
              the amount of the loss attributable to such activity (determined after carryovers
              under subsection (a)(1)(B))
  versions:
    - effective_from: '2026-01-01'
      effective_to: '2026-12-31'
      formula: |-
        if section_58_completed_loss_domain_is_satisfied:
          completed_section_58_a_tax_shelter_farm_loss_adjustment_after_insolvency
        else:
          0

section_58_b_passive_activity_loss_adjustment_after_insolvency

Derived

source: 26 USC 58(b) and (c)(1), guarded signed completed adjustment

- name: section_58_b_passive_activity_loss_adjustment_after_insolvency
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 58(b) and (c)(1), guarded signed completed adjustment
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/58#section_58_completed_loss_domain_is_satisfied
            output: section_58_completed_loss_domain_is_satisfied
            hash: sha256:local
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/58/b
            excerpt: >-
              In computing the alternative minimum taxable income of the taxpayer for any taxable
              year, section 469 shall apply
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/58/c/1
            excerpt: >-
              The amount of losses to which subsection (a) or (b) applies shall be reduced by the
              amount (if any) by which the taxpayer is insolvent
  versions:
    - effective_from: '2026-01-01'
      effective_to: '2026-12-31'
      formula: |-
        if section_58_completed_loss_domain_is_satisfied:
          completed_section_58_b_passive_activity_loss_adjustment_after_insolvency
        else:
          0

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Special rule for insolvent taxpayers

Official source

(A) In general

(A)In general#

The amount of losses to which subsection (a) or (b) applies shall be reduced by the amount (if any) by which the taxpayer is insolvent as of the close of the taxable year.

(B)Insolvent#

For purposes of this paragraph, the term “insolvent” means the excess of liabilities over the fair market value of assets.

in view

Whole section

▸rulespec code

Shown source

statutes/26/58.yaml

Displaying the canonical repository encoding.

This encoding covers the parent provision us/statute/26/58; no dedicated encoding exists for this exact provision yet.

View on GitHub

Rules

section_58_completed_loss_domain_is_satisfied

Derived

source: 26 USC 58(a), (b), and (c), bounded completed-loss domain

- name: section_58_completed_loss_domain_is_satisfied
  kind: derived
  entity: TaxUnit
  dtype: Judgment
  period: Year
  source: 26 USC 58(a), (b), and (c), bounded completed-loss domain
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/58/a
            excerpt: >-
              In determining the amount of the loss from any tax shelter farm activity, the
              adjustments of sections 56 and 57 shall apply.
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/58/b
            excerpt: the adjustments of sections 56 and 57 shall apply
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/58/b
            excerpt: >-
              the passive activity loss of a taxpayer shall be computed without regard to qualified
              housing interest
        - path: versions[0].formula
          kind: definition
          source:
            corpus_citation_path: us/statute/26/58/c/1
            excerpt: >-
              the term “insolvent” means the excess of liabilities over the fair market value of
              assets
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/58/c/1
            excerpt: >-
              The amount of losses to which subsection (a) or (b) applies shall be reduced by the
              amount (if any) by which the taxpayer is insolvent
        - path: versions[0].formula
          kind: exception
          source:
            corpus_citation_path: us/statute/26/58/c/2
            excerpt: >-
              shall (to the extent otherwise allowable) be allowed for such taxable year in
              computing alternative minimum taxable income and not treated as a loss from a tax
              shelter farm activity
  versions:
    - effective_from: '2026-01-01'
      effective_to: '2026-12-31'
      formula: |-
        (
          section_58_a_completed_loss_domain_is_satisfied
          and section_58_b_completed_loss_domain_is_satisfied
          and section_58_c_1_completed_insolvency_domain_is_satisfied
          and section_58_c_2_completed_disposition_domain_is_satisfied
        )

section_58_a_tax_shelter_farm_loss_adjustment_after_insolvency

Derived

source: 26 USC 58(a) and (c), guarded signed completed adjustment

- name: section_58_a_tax_shelter_farm_loss_adjustment_after_insolvency
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 58(a) and (c), guarded signed completed adjustment
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/58#section_58_completed_loss_domain_is_satisfied
            output: section_58_completed_loss_domain_is_satisfied
            hash: sha256:local
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/58/a
            excerpt: >-
              No loss of the taxpayer for such taxable year from any tax shelter farm activity shall
              be allowed.
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/58/c/1
            excerpt: >-
              The amount of losses to which subsection (a) or (b) applies shall be reduced by the
              amount (if any) by which the taxpayer is insolvent
        - path: versions[0].formula
          kind: exception
          source:
            corpus_citation_path: us/statute/26/58/c/2
            excerpt: >-
              the amount of the loss attributable to such activity (determined after carryovers
              under subsection (a)(1)(B))
  versions:
    - effective_from: '2026-01-01'
      effective_to: '2026-12-31'
      formula: |-
        if section_58_completed_loss_domain_is_satisfied:
          completed_section_58_a_tax_shelter_farm_loss_adjustment_after_insolvency
        else:
          0

section_58_b_passive_activity_loss_adjustment_after_insolvency

Derived

source: 26 USC 58(b) and (c)(1), guarded signed completed adjustment

- name: section_58_b_passive_activity_loss_adjustment_after_insolvency
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 58(b) and (c)(1), guarded signed completed adjustment
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/58#section_58_completed_loss_domain_is_satisfied
            output: section_58_completed_loss_domain_is_satisfied
            hash: sha256:local
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/58/b
            excerpt: >-
              In computing the alternative minimum taxable income of the taxpayer for any taxable
              year, section 469 shall apply
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/58/c/1
            excerpt: >-
              The amount of losses to which subsection (a) or (b) applies shall be reduced by the
              amount (if any) by which the taxpayer is insolvent
  versions:
    - effective_from: '2026-01-01'
      effective_to: '2026-12-31'
      formula: |-
        if section_58_completed_loss_domain_is_satisfied:
          completed_section_58_b_passive_activity_loss_adjustment_after_insolvency
        else:
          0