What is the main difference in the way that "earned income" and "capital gains (or portfolio income)" are acquired?
Earned income is money earned though your job.
Capital gains is money earned though investment(s).
Answer:
Earned income is money you received for a job performed and capital gains are profits from investments.
Explanation:
-Earned income refers to salary, bonuses, commissions, tips that you receive because of a job that you have done from an employer or your business.
-Capital gains refer to money that you receive because of the sale of a capital asset like stocks or real estate.