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Are Cd's taxed as ordinary income?

Updated: 8/17/2019
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14y ago

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The interest from CDs (Certificates of Deposit) is taxes as ordinary income.

In the unlikely event that you are trading transferable CDs on the secondary market, it would be theoretically possible for them to generate capital gains as well as ordinary income. This would apply to CDs purchased from securities brokers, not to ordinary CDs purchased at a bank.

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