### Question
What does net active income mean?


### Answer
**Net active income** has the following meaning in *26 U.S.C. § 469*:

> the taxable income of the taxpayer for the taxable year determined without regard to—


(i) any income or loss from a passive activity, and


(ii) any item of gross income, expense, gain, or loss described in paragraph (1)(A)

#### Citation:
  - *26 U.S.C. § 469*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart C-Taxable Year for Which Deductions Taken**

