Soil Water Movement Water movement in soil is from a zone of relatively high to low water potential. Movement may occur by saturated or unsaturated liquid flow or in the vapor phase. Total water potential under saturated conditions may include gravitational and pressure components.
Whether the taxpayer is insolvent is a vital consideration in determining if debt forgiveness results in income to the taxpayer. However, the code, IRS, and the courts have not provided an adequate definition of the term, and there is confusion as to what assets and liabilities are to be included in its determination.
Legal Definition of insolvent. 1  1 : having ceased paying or unable to pay debts as they fall due in the usual course of business â compare bankrupt. 2  2 : having liabilities in excess of a reasonable market value of assets held. 3  3 : insufficient to pay all debts an insolvent estate.