Term	Answer	Description
Gross income		A. This is used to offset passive income.
Active income		B. This term includes income from tax shelters.
Portfolio income		C. This is used to determine tax liability.
Passive income		D. This item is taxed at different rates depending on the holding period.
Investment expenses		E. Income from savings accounts, stocks, bonds, mutual funds, options, and futures are included in this term.
Real estate or limited partnership expenses		F. This term includes wages, salaries, bonuses/commissions, and interest/dividends/alimony.
Capital gains		G. This term includes income from self-employment.
Sale of a home		H. Investment income is offset with this related expense.
Taxable income		I. Using taxable income, it is based on tax tables or tax rate schedules.
Tax liability		J. During this transaction, you can exclude the first $250,000 ($500,000 for married taxpayers) of gain on sale.