Borrowing To Invest
Record this when you transfer borrowed funds from your credit account to your brokerage.
What you enter
| Field | Required | Description |
|---|---|---|
| Amount | Yes | Total amount transferred |
| Credit withdrawal date | Yes | When funds left your credit account |
| Brokerage deposit date | Yes | When funds arrived in your brokerage |
Credit withdrawal date must be on or before the brokerage deposit date.
What happens
- Non-deductible principal increases by the full amount — the borrowed money is not yet invested, so it doesn't generate deductible interest until you purchase securities
- Borrowed cash in brokerage increases by the full amount
Common questions
What if I borrow more than I end up investing? The remainder stays as non-deductible principal. You can invest it later or withdraw it.
What if the money passes through a chequing account? That's fine. Use the date it left your credit account and the date it arrived in your brokerage.
Learn more
- How interest deductibility works — why tracing borrowed funds matters
- Setting up your first tracking — the basic borrow-invest cycle