Can you really lose money on CD's through taxes?

I was talking about my investment in CD's with my mom, and she's a big fan of real estate. She says you gain more money through tax deductions and the selling of your house. To me, there just seems to be less loss with CD's. I have 11k so far in CD's, each with just the 1k minimum and held for 1 year each, and the interest rates range from 4.7% to 5% a year at a credit union (not at a regular bank).

Even if I claimed zero on my exemptions, would I still be paying more for taxes at the end of the fiscal year? I understand that there is a "capital gains tax" against the interest made on CD's, but won't I still be meeting a surplus as opposed to a deficit in the long run?...even as I continue to invest in more CD's?

Please help; and I appreciate all feedback. Thank you very much.

look don't listen to these folks they are right to a certain point but if you ladder these cd's where you have one coming do every month it sure gives you a great rainy day fund and every one should have one of them== at least 6 months of money in case you lose your job!!!

It is taxed as income.
If you figure in inflation is is possible to lose money through taxes and inflation.

It wouldn't be capital gains tax, but you are taxed on the dividends you are paid. And as someone else pointed out, you have to consider inflation.

You are making divdends and not capital gain. Yes all interests earned on anything must go through Uncle Sam there is no dodging it, unless you get a tax exempt account like a IRA. Dealing with Coporate banks usually have you losing money, but you must know what the current inflation rate is to find out if you are paying more or getting ahead. From the best of my knowledge you are ahead, but you may want to disversfy. If you dont like risk I would suggest an online savings account.