TaxTips.ca
Canadian Tax and
Financial Information
Brokerage Account Setup

Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?
See
USTaxTips.net

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with TaxTips.ca!

Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Free in 30!
Financial Planning
RRSP RRIF TFSA
Real Estate
Stocks Bonds etc.
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Provincial Budgets
Statistics etc.
Glossary
Site Map
Directory
Advertise With Us
Contact Us/About Us
Links & Resources



Financial Planning -> Stocks, Bonds etc. -> Borrowing to Invest -> Setting up the Brokerage Account

Setting up the Brokerage Account When Borrowing to Invest

If you borrow to invest, set up a separate brokerage account to hold the investments that you purchase with the borrowed funds (the leveraged investments).

This is the only way to ensure a clear paper trail to the borrowed funds, and will save you a lot of record keeping.  This is necessary even if you already have a margin account with a brokerage, and you want to use the margin being provided by stocks you have in the other account.  The brokerage can link the accounts so that they use a combined margin, and the stocks purchased on margin can be kept in a separate account.

Previous:  Methods of borrowing

Next:

bullet Buying the stocks and ETFs
bullet What to do with the dividends
bullet Selling the stocks and ETFs

 

Tax Tip:  Keep your leveraged investments in a separate brokerage account from your non-leveraged investments, to ensure a clear paper trail for interest deductibility.

 

Revised: September 19, 2017

 

 

Copyright © 2002 - 2017 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.