personal-Financial Planning – Simple Financial

Asset Cashout Planner

Model complex tax integration strategies to maximize net wealth from your investments.

Variables

Type of Investment Income

Upfront Corp Tax Rate

Base Personal Income

Tax-Free Loan Available

FHSA Contribution at Cashout

Corp Purchase History Determines your Average Cost Base (ACB). You are only taxed on the profit above this average cost, not the total gross proceeds. Add tranches if you bought at different prices.

Shares	Price per Share	Total Cost
0	Avg Cost:	$0.00

Sale Scenario

Sale Price

Shares to Sell

AI Optimal Strategy How this works: The AI mathematically isolates the exact minimum taxable dividend required to trigger a 100% corporate tax refund (RDTOH). It then routes all remaining cash through your tax-free channels (CDA & Loan Repayments) to minimize personal tax exposure.

To perfectly trigger your maximum corporate tax refund (RDTOH) while minimizing unnecessary personal tax brackets, here is the mathematically optimal mix:

Target Loan Repay

Taxable Div. Issued

Total Extracted

Est. Total Tax

Total Wealth Extracted The total final value extracted from your corporation into your personal control. It includes both Liquid Cash in your bank AND cash sheltered inside your FHSA. Hover over the bar below to see exact ratios.

$0.00

( $0.00 Liquid Cash + $0.00 FHSA )

Total Retained Wealth

0% of gross proceeds

The true final value remaining after all corporate and personal taxes are paid (Liquid Cash + FHSA).

Net Corporate Tax

0% of gross proceeds

Corporate upfront tax permanently lost to CRA (after RDTOH refunds are factored in).

Net Personal Tax

0% of gross proceeds

Calculated progressively based on your base income, offset by FHSA deductions.

Corporate Tax & Dividend Flow

1. Corporate Taxation

Corporate Capital Gain $0.00

Upfront Corporate Tax -$0.00

2. Tax-Free Payouts

Tax-Free Capital Dividend (CDA) $0.00

Tax-Free Loan Repayment $0.00

3. Taxable Extraction & Refunds

Taxable Dividend Issued $0.00

Corporate Refund (RDTOH) +$0.00

4. Personal Tax & FHSA Impact

Net Personal Income Tax Owed -$0.00

Personal Tax Breakdown Shows exactly how your Corporate Dividend flows through the progressive Ontario income tax brackets, and how the FHSA deduction is calculated. Note: Non-eligible dividends are grossed up by 15% behind the scenes to map to higher brackets, but the rates shown here are the effective tax rates applied to the actual cash dividend received.

Ontario Bracket	Effective Div. Rate	Dividend Allocated	Tax Due
No taxable dividend issued. Personal tax is $0.

FHSA Saving Deduction Breakdown Shows exactly how your FHSA contribution reduces your taxable income from the top-down. The deduction is applied against your highest marginal brackets first. Note: Deductions save tax at the ordinary income rate.

Ontario Bracket	Ordinary Rate	Income Deducted	Tax Saved

Personal Variables

Base Personal Income

FHSA Contribution at Cashout

Personal Purchase History Determines your Average Cost Base (ACB). Add tranches for every block of shares you bought to ensure you are only taxed on pure profit.

Shares	Price per Share	Total Cost
0	Avg Cost:	$0.00

Sale Scenario

Sale Price

Shares to Sell

Total Wealth Extracted The total remaining value generated from selling your personal assets after paying the exact marginal income taxes on the 50% taxable portion of your capital gains. Includes Liquid Cash + FHSA.

$0.00

( $0.00 Liquid Cash + $0.00 FHSA )

Gross Proceeds

$0.00

Net Personal Tax Burden

-$0.00

AI Bracket Optimizer How this works: Personal tax is progressive. As you earn more, your tax rate jumps up at specific "brackets". The AI calculates exactly how much room is left in your current tax bracket, and tells you the maximum number of shares you can sell without spilling over into a higher, more expensive tax rate.

Calculating optimal bracket threshold...

Optimal Sale Limit

0 Shares

Personal Tax Breakdown Shows exactly how your 50% taxable capital gain flows through the progressive Ontario income tax brackets.

Ontario Bracket	Marginal Rate	Gain Allocated	Tax Due

FHSA Saving Deduction Breakdown Shows exactly how your FHSA contribution reduces your taxable income from the top-down. The deduction is applied against your highest marginal brackets first. Note: Deductions save tax at the ordinary income rate.

Ontario Bracket	Ordinary Rate	Income Deducted	Tax Saved

The Duo Matrix Optimizer

Need a specific amount of cash? Tell the AI how many total shares you want to sell. It runs completely independently to test thousands of combinations, finding the absolute most tax-efficient split between Corporate and Personal sales, optimized around your FHSA deductions.

Independent Scenario Variables

Target Shares to Sell

Global Sale Price

Base Personal Income

Tax-Free Loan Available

Corp Rate (%)

FHSA Contribution at Cashout

Sell from Corp

Sell from Personal

Maximum Retained Wealth The highest possible combined wealth extracted across thousands of simulated scenarios. Liquid Cash + FHSA Account Funds.

( $0 Liquid Cash + $0 FHSA )

Net Tax Burden Breakdown

Execution Strategy Breakdown

Corporate Allocation

Personal Allocation

Property & Loan Setup

Home Purchase Value

Down Payment / Initial Equity

Equity: 50%

Amount to Draw & Invest Max: $0

Rates & Taxes

HELOC Interest Rate

Marginal Tax Rate

Interest is deducted at your highest bracket.

Expected Annual Inv. Return

Annual Debt Recycling Outcome A summary of the cash flow generated by borrowing against your home equity to invest. It pits the after-tax cost of your debt against the expected growth of your assets.

True Net Interest Cost

-$0

After tax deductions

Expected Asset Growth

+$0

Annual portfolio return

Net Annual Wealth Benefit

+$0

The Math Breakdown Step-by-step calculation showing how the gross interest is reduced by your marginal tax refund to arrive at the true net cost.

Total Borrowed & Invested $0

Gross Annual Interest (0%) -$0

Tax Refund on Interest +$0

Net Out-of-Pocket Interest -$0

How This Strategy Works

The Concept (Debt Recycling): When you buy a house with a large down payment (creating immediate equity) or pay down your mortgage over time, that equity is physically trapped inside the walls of your home. By borrowing against it with a HELOC, you can unlock that capital to purchase income-generating assets (stocks, businesses, etc.).

The Tax Magic (CRA Rules): In Canada, regular mortgage interest on your primary residence is not tax-deductible. However, if you explicitly borrow against your home to invest in assets that have a reasonable expectation of generating income, the interest on that specific borrowed amount becomes 100% tax-deductible against your personal income on your T1 tax return. This heavily subsidizes the cost of the loan.