Question

U Search this course Ch 03: Assignment - Preparing Your Taxes Match tne terms reiating to tne basic terminoiogy ana concepts or personai finance on the iert with the descriptuons or the terms un une nignt. Keau each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Answer Description Gross Income A. This term refers to an asset sold for more than its original value. Active income B. This term includes income gained from real estate and limited partnerships. C. This is used to offset passive income. D. This is calculated by determining income subject to taxes less adjustments, Portfolio income Passive income deductions, and exemptions and applying the appropriate rate(s). Investment expenses E. This term refers to gross income less adjustments, deductions, and exemptions. Real estate or limited partnership F. Income from savings accounts, stocks, bonds, mutual funds, options, and futurès expenses are included in this term. Capital gains G. Investment income is offset with this related expense. Sale of a home H. This term refers to income earned on the job. Taxable income I. During this transaction, you can exclude the first $250,000 ($500,000 for married taxpayers) of gain on sale. Tax liability J. This term includes wages, salaries, bonuses/commissions, and interest/dividends/alimony. K Points: 0/1 Close Explanation a

Answer 1

Answer:

H. Term Gross Income Active Income Portfolio Income Passive Income Investment expense Real estate or limited partnership expenses Capital gains Sale of a home Taxable income Answer Description J. This terms includes wages, salaries, bonuses/commissions, and interest/dividend/alimony This term refers to income earned on the job Income from savings accounts, stocks, bonds, mutual funds, options, and future are included in this term This is used to offset passive income. Investment income is offset with this related expense This term includes income gained from real estate and limited partnerships This term refers to an asset sold for more than its original value. During this transaction, you can exclude the first $250,000 ($500,000 for married taxpayers) of gain on sale This term refers to gross income less adjustments, deductions and exemptions This is calculated by determining income subject to taxes less adjustments, deductions and exemptions and applying appropriate rates Tax liability