3. Vocabulary - Taxable income terminology Taxable Income Terminology Match the taxable income terms on the right with the descriptions of the terms on the left. (Note: These are not necessarily complete definitions, but there is only one possible answer for each term.) Description Term This term includes expenses that can only offset portfolio income. During this transaction, you can exclude the first $250,000 ($500,000 for married taxpayers) of gain on sale. This term refers to passive income offset. This term includes income from tax shelters. This term includes wages, salaries, bonuses/commissions, and interest/dividends/alimony