These include white papers, government data, original reporting, and interviews with industry experts. Often, income made on investments undergoes different, and sometimes preferential, tax treatment, which varies by country and locality. This is where the company reports the portion of the net income obtained through investments made with surplus cash, as opposed to being earned with the company’s usual line of business. Start by determining your objectives and then figure out the tax structure associated with any new investment. The realized gains could be capital gains from selling a stock; interest income received from fixed income products; dividends paid to shareholders of a company; rental income received from property; certain annuity payments ; royalty payments; etc.