Smith Manoeuvre Calculator

A comprehensive web application for calculating the Smith Manoeuvre strategy, a Canadian real estate investment technique that converts non-deductible mortgage interest into tax-deductible investment loan interest.

Features

• Property Input: Enter details for primary property and optional second property

• Income Information: Include province of residence, annual income, and other income sources

• Spouse/Partner Support: Optional spouse income and tax information

• Real-time Calculations: Instant calculation of potential tax savings and equity gains

• Canadian Tax Integration: Provincial and federal tax rate calculations

• Professional UI: Clean, modern interface with responsive design

Technology Stack

• Frontend: Next.js 14 with TypeScript
• Styling: Tailwind CSS
• Calculations: Decimal.js for precise financial calculations
• Icons: Lucide React
• Deployment: Ready for Vercel, Netlify, or other platforms

Getting Started

Prerequisites

• Node.js 18+ (though there may be some installation issues on macOS - see troubleshooting)
• npm or yarn

Installation

1. Clone the repository:

git clone <repository-url>
cd smithy-calculator

2. Install dependencies:

npm install

3. Run the development server:

npm run dev

4. Open http://localhost:3000 in your browser.

Troubleshooting

If you encounter Node.js library issues on macOS (like ICU library errors), try:

1. Reinstall Node.js using Homebrew:

brew uninstall node
brew install node

2. Or use Node Version Manager (nvm):

nvm install 18
nvm use 18

Project Structure

src/
├── app/                 # Next.js app directory
│   ├── globals.css     # Global styles with Tailwind
│   ├── layout.tsx      # Root layout component
│   └── page.tsx        # Main page component
├── components/         # React components
│   ├── CalculatorForm.tsx    # Main input form
│   └── ResultsDisplay.tsx    # Results display
├── lib/               # Utility functions
│   └── calculations.ts # Smith Manoeuvre calculations
└── types/             # TypeScript type definitions
    └── index.ts       # Data structure types

Key Components

CalculatorForm

• Handles all user input for properties, income, and spouse information
• Real-time tax rate calculation based on province and income
• Optional sections for additional properties and spouse information

ResultsDisplay

• Shows comprehensive calculation results
• Summary cards with key metrics
• Detailed breakdown of savings and costs
• Scenario analysis for different risk levels

Calculations

• Precise financial calculations using Decimal.js
• Canadian provincial and federal tax rate integration
• Smith Manoeuvre-specific logic for equity and tax savings

Smith Manoeuvre Strategy

The Smith Manoeuvre is a Canadian real estate investment strategy that:

1. Accelerates Mortgage Payments: Uses investment returns to pay down the mortgage faster
2. Converts Interest: Transforms non-deductible mortgage interest into tax-deductible investment loan interest
3. Builds Investment Portfolio: Creates a growing investment portfolio while paying off the mortgage
4. Tax Efficiency: Maximizes tax deductions and savings

Important Disclaimers

• This calculator provides estimates only and should not be considered as financial advice
• The Smith Manoeuvre involves significant risks and should be discussed with qualified financial professionals
• Tax laws and rates may change, affecting calculation accuracy
• Individual circumstances vary and may affect the suitability of this strategy

Contributing

1. Fork the repository
2. Create a feature branch
3. Make your changes
4. Add tests if applicable
5. Submit a pull request

License

This project is licensed under the Apache License 2.0 - see the LICENSE file for details.

Support

For questions or support, please open an issue in the repository.