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Some investors own not only an individual investment, but also a regular brokerage account. Each of these instruments is designed to increase the initial capital. Such simultaneous possession of these funds for investment presupposes that the investor has knowledge, how to transfer shares from a brokerage account to IIS and in the opposite direction.
A unique opportunity for an individual investment account is that deductions can be received on it, but on different terms. If the investor primarily expects to increase his capital with the help of a tax deduction, then it is better to transfer assets to the IIA. However, sometimes it becomes necessary to conduct a reverse operation – a transition from an individual investment account to a classic brokerage account. From this article, you will learn whether and how to carry out these operations correctly.
When is the transfer of securities from IIS to a brokerage account justified?
It is quite possible that the investor urgently needs money, and the IIA has already expired. However, in addition to cash, it also contains financial assets. In this case, you can safely close an individual investment account, since the entire tax deduction has already been received. As a result, all profits are withdrawn, and the securities are transferred to a brokerage account.
Thanks to these actions, the investor gets the opportunity to receive a deduction of up to 3 million rubles per year, and the portfolio ownership period begins to count from the moment the assets are acquired to an individual investment account. This possibility is reported in a letter from the Ministry of Finance dated 2016. However, there is one caveat here – such an opportunity should be provided by a brokerage company. Let us recall that such a step is relevant only if three years have passed since the opening of the ISS.
Is it possible to transfer shares to a brokerage account when closing IIS
The procedure itself is not very complex. Investors have to take several steps to solve this problem:
- a notice of closing an individual investment account is signed;
- an order to withdraw money is drawn up;
- an order is signed to close an account with a depository;
- a document is drawn up on the transfer of assets to a brokerage account.
After that, it remains to wait for the moment of closing the IIS. This procedure takes a maximum of one month.
Is it possible to transfer shares to IIS from a brokerage account
Investors have such an opportunity, but subject to certain rules. First of all, it should be remembered that the IIS can only be replenished with Russian rubles. As a result, it is prohibited to deposit the following assets on the IIS:
- foreign currency;
- units of mutual funds;
- other values.
In addition, the maximum amount of replenishment of an individual investment account during the year is 1 million rubles.
Instructions on how to transfer assets to IIS from a brokerage account
To complete this operation, you must close all positions and withdraw money from the account. With the funds received, you can replenish the balance of the IIA. The algorithm for the upcoming actions is as follows:
- it is necessary to clarify with the brokerage company the conditions under which positions can be closed, as well as to clarify the method of withdrawing money from the account;
- a brokerage account can be closed or only a certain part of securities can be sold;
- the money received after the sale of shares is entered into the balance of the individual investment account;
- if both accounts are opened with the same brokerage company, then the amount of commission will be close to zero;
- the necessary shares are purchased on an investment investment account.
Is it profitable to transfer money from a brokerage account to an IIS
This question cannot be answered unequivocally. This step has a number of pros and cons.
Among the main advantages of transferring assets from a classic brokerage account to an IIS, two can be noted:
- Ability to get a deduction for the amount of balance top-up. The maximum contribution for which a refund will be accrued is 400 thousand rubles per year. Thus, investors have the right to receive no more than 52 thousand rubles annually for three years.
- Income tax relief from investment activities. The amount of deduction in this situation is not limited. It is important that this is 13% of income.
Transferring assets from a classic brokerage account to an individual investment account is possible, and the benefits of this step are already known. However, investors are often interested in the disadvantages of such a move. Of course they are.
Securities were purchased on a brokerage account at a certain price. It is quite possible that at the moment of making a decision to terminate the account service agreement, their value has dropped. It is at this moment that they should be transferred to the IIS.
However, if there is free capital, investors should think about the possibility of opening an individual investment account, which will exist in parallel with the brokerage one. Such a decision seems appropriate in a situation when the price of the assets that the investor wants to acquire is low. As a result, he will be able to receive income from dividends, tax deduction, and also count on an increase in the value of shares. Assets that have already been purchased into a brokerage account are best dealt with as their value increases.