These are not necessarily complete definitions, but there is only one possible answer for each term. Term Description Gross income A. This term refers to income earned on the job. Active income B. Portfolio income C. During this transaction, you can exclude the first $250,000 ($500,000 for married taxpayers) of gain on sale. This term refers to earnings and capital gains generated from investment holdings. This term includes expenses that can only offset portfolio income. This term includes income from tax shelters. This is used to determine tax liability. Passive income D. ||0o O O OO O Investment expenses E. F. Real estate or limited partnership expenses Capital gains G. Sale of a home H. This term essentially includes all income subject to federal tax Using taxable income, it is based on tax tables or tax rate schedules. This term refers to an asset sold for more than its original value. Taxable income This is used to offset passive Income. Tax liability Orade it Now Save Continue 900