Assets that earn interest are taxed on _____; capital gains are taxed on _____.

Name: Assets that earn interest are taxed on _____; capital gains are taxed on _____.
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Assets that earn interest are typically taxed on an accrual basis, meaning as the interest is earned it is taxed, regardless of whether it is received or not. Capital gains, on the other hand, are taxed on a realization basis, meaning they are taxed at the time the asset is sold and the gain is actually realized.

Assets That Earn Interest Are Taxed on _____; Capital Gains