Deferred Capital Gains versus Tax Deferred

[Galli]

Just curious if anyone has any insight to how these two seperate (yet very similar) tax treatments might be described in the case studies for the exam?
For example, I was reviewing the blue box on page 247 of the CFAI text and it took me a good awhile to figure out the difference of what they were describing in #2 and #3. Should I just remember that deferred capital gains means only the capital gains are taxed (at a future date) whereas tax deferred means the entire account is taxed (at a future date)?
I can see how CFAI will try and make candidates swap the two ideas!

 

[broadex]

I cant see your reference on the CFAI books however I will give you my best short from a tax point. An investment account can be held in a (i) taxable or (ii) tax deferred or (iii) tax-exempt account.
A tax deferred account defers taxation on investment returns within the account. In most cases only capital gains are deferred hence deferred capital gains. As a tax practioner, I can tell you that there countries that defer inheritance tax, or defer income tax …..etc. However the CFAI material tends to focus on deferred capital gains only.