Brokerage Transfer to Credit

Record this when you move cash from your brokerage account to pay down your credit account.

What you enter

FieldRequiredDescription
AmountYesTotal amount transferred
Brokerage withdrawal dateYesWhen funds left your brokerage
Credit deposit dateYesWhen funds were applied to your credit account
Borrowed amountNoHow much comes from borrowed brokerage cash. Default: max(0, amount - personal cash)
Borrowed interest amountConditionalIf outstanding interest exists: how much of the interest payment is funded from the borrowed portion. Shown only when outstanding interest > 0

What happens

Brokerage side (at brokerage withdrawal date):

  • Borrowed cash decreases by the borrowed portion you specified
  • Personal cash decreases by the personal portion

Credit side (at credit deposit date): Once cash arrives at the credit account, it is applied as regular incoming cash — the borrowed/personal source doesn't matter:

  1. Outstanding interest is paid first — split proportionally between eligible and non-eligible. This is when eligible interest becomes tax-deductible.
  2. Remaining amount reduces principal — split proportionally between deductible and non-deductible. Within deductible, the reduction is further split between invested principal and capitalized deductible interest.

The borrowed/personal split you chose only affects the brokerage side — which cash bucket decreases. On the credit side, it's all treated the same way.

When deductible principal is reduced, the borrowed cost of your holdings decreases proportionally. When non-deductible principal is reduced, borrowed cash in your brokerage reclassifies to personal by the same amount.

Common questions

How is this different from a Credit Payment? A Credit Payment uses external funds. This event uses cash already in your brokerage — so it affects both brokerage and credit balances.

Learn more