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Margin Lending - Sale of Shares

Discussion in 'Accounting, Tax & Legal' started by SSShares, 4th Aug, 2009.

  1. SSShares

    SSShares New Member

    4th Aug, 2009
    Newcastle NSW

    I'm hoping someone can help me. I'll try and simplify my questions with an example;

    1. I transferred $100k of shares from my Comsec account to a new Etrade Margin Lending account to provide 'funds' to purchase more shares.

    2. I purchased $80k of a different share as a margin loan.

    3. I decided the interest rate from Etrade was too high and setup an investment loan through my bank and transferred the funds to Etrade (ie I no longer have any loan outstanding with Etrade), say $80k.

    4. My original shares ($100k) increased substantially (doubled) and now I'm keen to sell them.

    My question, if I sell my original shares for $200k, do I have to used these funds to pay back my investment loan, or can I use these funds elsewhere ie to pay down my home loan? Alternatively, if I transfer my shares back to my Comsec account and sell, does this seperate my 'investment loan' issue? I'm obviously keen to maximise my tax deductable loan. Any help appreciated.