Question 23 of 30. A taxpayer will have a negative net worth when their Total liabilities immediately before the cancellation exceed the fair market value of their assets immediately before the cancellation. Total liabilities immediately before the cancellation exceed the fair market value of their assets immediately after the cancellation Total liabilities immediately after the cancellation exceed the fair market value of their assets immediately before the cancellation Total liabilities immediately before the cancellation exceed the fair market value of their assets on January 1 the year after the cancellation