Lesson Making a withdrawal
Learn how withdrawals work for non-registered Margin accounts.
Margin accounts are taxable, and are not considered ‘registered’ accounts with the government. Due to this, withdrawals are not regulated, or limited in any way.
Income or capital gains tax applies at the time of the action in the account, (When you sell a security like a stock/ETF or receive a dividend) - however Questrade does not withhold this tax on your behalf.
Although transfers of cash out of a margin account are not taxable themselves, if you sold an investment and ‘realized’ or locked-in your profit, this action of realizing the profit is taxed as a capital gain when it’s time to file your taxes. Therefore it’s not the transfer of cash out of a margin account that ‘triggers’ the taxes, but rather when you bought/sold the investments and at what prices.
Because of this, we highly recommend speaking with a tax professional about the implications of actions in your Margin account.
This example is for educational purposes only, Questrade is unable to provide specific tax advice pertaining to your financial situation.
Please note: Withdrawals from your margin account may also affect your buying power if you’re currently borrowing funds to trade or invest. Please pay close attention to your balances and currency if this is the case, otherwise interest charges may apply.
Note:The information in this blog is for educational purposes only and should not be used or construed as financial or investment advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied, is made by Questrade, Inc., its affiliates or any other person to its accuracy.
