Brokerage Transfer to Credit
Record this when you move brokerage cash to your credit account, or when brokerage margin is used to fund a credit-account payment.
What you enter
| Field | Required | Description |
|---|---|---|
| Amount | Yes | Total amount transferred or funded |
| Brokerage withdrawal date | Yes | When funds left your brokerage or margin was used |
| Credit deposit date | Yes | When funds were applied to your credit account |
| Borrowed cash | Cash state | How much comes from borrowed brokerage cash |
| Personal cash | Cash state | How much comes from personal brokerage cash |
| Margin | Margin-enabled shortfall | Amount funded by brokerage margin when the transfer exceeds available cash |
What happens
A Brokerage Transfer to Credit is not always the same as a normal Credit Payment.
When brokerage cash is available
The app preserves whether the transferred cash came from borrowed or personal brokerage cash.
Brokerage side (at brokerage withdrawal date):
- Borrowed cash decreases by the borrowed portion
- Personal cash decreases by the personal portion
Credit side (at credit deposit date):
- Outstanding interest is paid first
- Personal-source cash behaves like a normal payment
- Borrowed brokerage cash keeps its source character
- Borrowed cash returned to the credit line can directly reduce the matching non-deductible principal created by idle borrowed cash
- Borrowed cash used to pay eligible interest becomes capitalized deductible interest
When margin funds the transfer
If the brokerage has no cash, or the transfer exceeds available cash and margin is enabled, brokerage margin can fund the transfer.
In that case, the event refinances debt from the credit account into brokerage margin. The credit balance decreases, and margin debt increases with the same deductible/non-deductible character.
Common questions
How is this different from a Credit Payment? A Credit Payment uses external personal funds. Brokerage Transfer to Credit uses brokerage cash or brokerage margin. Because brokerage cash can have borrowed or personal source character, the app keeps that source character when applying the transfer to the credit account.
Why does borrowed brokerage cash matter? Borrowed brokerage cash represents borrowed funds that have not been invested. Returning that cash to the credit line directly reduces the matching non-deductible principal. It is not treated the same as a personal cash payment.
Learn more
- Brokerage margin — transfers funded by margin
- Credit account — how credit balances are split
- Mixed HELOC use — proportional repayment rules
- How interest is time-weighted — how payments affect future interest splits