Well ya, *any* withdrawal while you are still using margin is going to complicate your accounting, but it's not impossible to track your withdrawals.CanRulez wrote: ↑Feb 9th, 2017 7:05 amNot only that. If you use your margin to purchase stocks in your account, then the margin interest is definitely tax deductible.
However, once you start tinkering with your margin and use the funds to buy your next gadget, TV, speakers or stuff like that, then you're essentially going to make it 99% more difficult to compartmentalize what is tax deductible and what is not. In fact, CRA may disallow it altogether.
If you're not going to deduct your interest expenses altogether, then the matter is moot, but the majority do.
If you have $400k shares but only $300k of equity and you decide to sell $10k of something to do a reno - guess what? That's not a cash withdrawal either
Pretty easy to just make a spreadsheet, add $10k to it and the date of withdrawal, and track how much of your margin interest was spent in that and don't include that in your deductions.
IIRC, 2% on $140k and 1.5% on over is what the current rates are at IB. That crushes a normal LOC or HELOC or even a variable rate mortgage.
It's definitely an option worth taking note of.