Cash in IB account - tax return

Good morning everyone,

for anyone who has an IB account, I was wondering about the cash that might be sitting in the account at the end of the year, for example after buying the last batch of VT shares for the year, and then are left with let’s say 10 or 50 USD.

On the tax return, do you declare it separately? Or just add it to the cash/wealth section?

I add it to the cash section, but it’s more than 50chf.

And I also need to declare the cash interests, so that’s where I put it.

Do you guys list cash in each currency you hold or simply in account currency (ie usd)?

One account (in my base currency which is CHF)



What do you mean by cash interests?

IBKR pays broker interest on cash balances.

That is of course taxable income, same as on savings accounts.

Of course, I had heard of IB paying interest on cash balances, but didn’t think I „qualify“ with the leftovers under 50-100 USD. So there is no minimum balance or special account for that?

I would have to check out the IB statements one of these days, if anyone can tell me where exactly to look I’d really appreciate it!

So according to this no interest is paid for cash balances of under 10k USD.

And then above that only accounts with a net asset value of 100k or more benefit from the full rate interest on the cash balance (currently 4.08%).

Has anyone parked his/her cash on IB as the currently interest rate of 4.08% is really interesting?

I have some short-term liquidity (roughly ~$500k) on IB because I get paid a lot in USD and have to pay a lot of bills in USD. If your expenses are in CHF, I wouldn’t do this because you have significant exchange rate risk.

But I do not have any money in the account directly, everything is in short term T-Bills. They pay more (currently ~4.9%) and are generally more secure.

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Looking over my canton’s tax software I guess this cash balance could be declared just like a separate bank (savings) account, especially if one needed to declare interest.

Does this cash interest get any withholding tax from IB?

No withholding from IB.