Term Answer Gross income Active income Description A. This term refers to income earned on the job. B. To qualify for exclusion during this transaction, you must have owned and occupied for two of the five prior years. C. This term refers to earnings and capital gains generated from investment holdings. D. This term includes expenses that can only offset portfolio income. E. This term includes income from tax shelters. F. This is used to determine tax liability. Portfolio income Passive income Investment expenses Real estate or limited partnership MMMMMMMMMM expenses Capital gains Sale of a home G. This term essentially includes all income subject to federal tax. H. This is calculated by determining income subject to taxes less adjustments, deductions, and exemptions and applying the appropriate rate(s). I. This term refers to an asset sold for more than its original value. J. This term refers to passive income offset. Taxable income Tax liability