the difference between 'realized' and 'recognized'$$a crucial distinction in taxation. For instance, if someone sells an asset like stock and makes a profit, that$$s a realized gain. But it only becomes a recognized gain when it$$s reported for tax purposes, assuming no special rules apply to delay or exclude it$.$ This difference really matters when calculating what gets taxed and when.

How do you think this distinction impacts tax planning strategies, especially for individuals or businesses aiming to minimize their tax liability?