Corporate Assets Ledger

The Corporate Assets tab focuses on the values of all Corporate Assets; Investments & Securities, Goodwill & Operations and Real Estate. This information is broken out into 3 main areas; Liquid Assets, Fixed Assets, and Share Value.

Liquid Assets

• Annual Deposits – The total annual deposits made to Corporate Investments & Securities.
• Investment Growth – Calculated based on the previous year’s Year End Value and Rate of Return.
• Taxable Income – The tax owing based on investment growth and Tax Efficiency.
• Annual RDTOH – The total Annual Refundable Dividend Tax on Hand (RDTOH).
• Income Withdrawal – Total annual investment withdrawals paid out as dividends and used to offset lifestyle deficiencies.
• Insurance Withdrawal – Total withdrawals required to pay for corporate life insurance premiums.
• Tax Withdrawal – Any additional withdrawals required to offset tax owing (see Taxation Ledger).
• Total Withdrawal – Calculated as Income Withdrawal + Tax Withdrawals.
• Year End Value – The total year end investment value for Corporate Investments & Securities.
• Deferred Tax – The total outstanding tax liability assuming full liquidation each year.

Fixed Assets

There are 2 types of corporate fixed assets; Goodwill & Operations and Real Estate. The following outlines the columns included for these 2 types of assets:

• Estimated FMV – The Fair Market Value of corporate Goodwill & Operations. This value will grow according to the index assumption for Business Value.
• Property Value – The total year end value of corporate Real Estate.
• Mortgage – The total outstanding end of year mortgage value.
• Equity – The equity value of real estate calculated as Property Value – Mortgage.
• Year End Value – Total value of all corporate fixed assets less any remaining mortgage value; Goodwill & Operations Estimated FMV + Real Estate Equity.
• Deferred Tax – Total outstanding tax liability assuming full liquidation each year.

Life Insurance

There are two categories in the section; Total All Policies and Death Benefits.

The Total All Policies section includes:

• Annual Premium – Total premiums of all corporate life insurance policies entered.
• Debt – End of year balance for debts on all of the corporate life insurance policies.
• Cash Value – Sum of cash values from all corporate life insurance policies.
• Policy ACB – The total Adjusted Cost Base of all corporate life insurance policies entered.
• Death Benefit – Total death benefit, including cash values, from all corporate life insurance policies entered.
  

The Death Benefits section includes:

• Total Client – Total corporate life insurance benefits payable upon the client’s death.
• Total Spouse – Total corporate life insurance benefits payable upon the spouse’s death.
• Total Joint Last – Total corporate life insurance benefits payable upon the last death of the client and spouse.
  

Share Value

• Equity – Calculated as the total After Tax Value of both Liquid and Fixed Assets. This corresponds to the equity value to the shareholders assuming full liquidation within the corporation.
• Deferred Tax – The outstanding tax liability to the shareholders assuming full liquidation each year.
• Client Allocation – The portion of the Equity that is allocated to the Client based on share structure.
• Spouse Allocation – The portion of the Equity that is allocated to the Spouse/Partner based on share structure.