Tax & owner finances
Pre-Settlement Insolvency Snapshot Builder
Assemble a pre-cancellation asset and liability snapshot for a tax professional.
How to use this calculator
- Gather all asset fair values; all liabilities; event date; ownership. Use documents covering the same date or period.
- Replace the example values with your own figures. Add or remove rows to match your records. Change one assumption at a time to compare scenarios.
- Review assets liabilities and arithmetic shortfall; supporting inventory. Open the breakdown and export a copy for discussion.
How the calculation works
Assets are summed at fair market value and liabilities at the amount properly included in the snapshot. Arithmetic insolvency is liabilities less assets, floored at zero.
Worked example
These results use the editable example values shown in the calculator. They illustrate the method and do not predict an offer or outcome.
- Arithmetic insolvency at snapshot
- $40,000.00
- Total assets at fair market value
- $280,000.00
- Total included liabilities
- $320,000.00
- Snapshot date
- 2026-10-09
Questions about the results
What does this tool include?
Assemble a pre-cancellation asset and liability snapshot for a tax professional. Assets are summed at fair market value and liabilities at the amount properly included in the snapshot. Arithmetic insolvency is liabilities less assets, floored at zero.
What should I verify before relying on the result?
Include all required assets, including exempt assets, and avoid netting assets against liens. Liability inclusion and taxpayer/entity rules need review. This does not determine an exclusion or complete Form 982.
What this result does and does not tell you
Include all required assets, including exempt assets, and avoid netting assets against liens. Liability inclusion and taxpayer/entity rules need review. This does not determine an exclusion or complete Form 982.
Sources and reference material
Sources checked 2026-10-09. Verify rules and program terms for your actual transaction date.