MileniumTick/kanchi-dividend-us-tax-accounting

Kanchi Dividend Us Tax Accounting

Overview

Apply a practical US-tax workflow for dividend investors while keeping decisions auditable. Focus on account placement and classification, not legal/tax advice replacement.

When to Use

Use this skill when the user needs:

• US dividend tax classification planning (qualified vs ordinary assumptions).
• Holding-period checks before year-end tax planning.
• Account-location decisions for stock/REIT/BDC/MLP income holdings.
• A standardized annual dividend tax memo format.

Prerequisites

Prepare holding-level inputs:

• ticker
• instrument_type
• account_type
• hold_days_in_window (if available)

Expected JSON Input Format

{
  "holdings": [
    {
      "ticker": "JNJ",
      "instrument_type": "stock",
      "account_type": "taxable",
      "security_type": "common",
      "hold_days_in_window": 75
    },
    {
      "ticker": "O",
      "instrument_type": "reit",
      "account_type": "ira",
      "hold_days_in_window": 100
    }
  ]
}

For deterministic output artifacts, provide JSON input and run:

python3 skills/kanchi-dividend-us-tax-accounting/scripts/build_tax_planning_sheet.py \
  --input /path/to/tax_input.json \
  --output-dir reports/

Guardrails

Always state this clearly: tax outcomes depend on individual facts and jurisdiction. Treat this skill as planning support, then escalate final filing decisions to a tax professional.

Workflow

1) Classify each distribution stream

For each holding, classify expected cash flow into:

• Potential qualified dividend.
• Ordinary dividend/non-qualified distribution.
• REIT/BDC-specific distribution components where applicable.

Use references/qualified-dividend-checklist.md for holding-period and classification checks.

2) Validate holding-period eligibility assumptions

For potential qualified treatment:

• Check ex-dividend date windows.
• Check required minimum holding days in the measurement window.
• Flag positions at risk of failing holding-period requirement.

If data is incomplete, mark status as ASSUMPTION-REQUIRED.

3) Map to reporting fields

Map planning assumptions to expected tax-form buckets:

• Ordinary dividend total.
• Qualified dividend subset.
• REIT-related components when reported separately.

Use form terminology consistently so year-end reconciliation is straightforward.

4) Build account-location recommendation

Use references/account-location-matrix.md to place assets by tax profile:

• Taxable account for holdings likely to remain qualified-focused.
• Tax-advantaged account for higher ordinary-income style distributions.

When constraints conflict (liquidity, strategy, concentration), explain the tradeoff explicitly.

5) Produce annual planning memo

Use references/annual-tax-memo-template.md and include:

• Assumptions used.
• Distribution classification summary.
• Placement actions taken.
• Open items for CPA/tax-advisor review.

Output

Always output:

1. Holding-level distribution classification table.
2. Account-location recommendation table with rationale.
3. Open-risk checklist for unresolved tax assumptions.
4. Optional generated artifacts from skills/kanchi-dividend-us-tax-accounting/scripts/build_tax_planning_sheet.py.

Cadence

Use this minimum rhythm:

• Annually (60 min): full tax planning memo with account-location review.
• Quarterly (15 min): refresh holding-period status for recent acquisitions.
• Ad-hoc: rerun after material position changes, REIT/BDC additions, or triggered reviews from kanchi-dividend-review-monitor.

Multi-Skill Handoff

• Receive candidate and holding list from kanchi-dividend-sop.
• Receive risk-event context (WARN/REVIEW) from kanchi-dividend-review-monitor.
• Return account-location constraints back to kanchi-dividend-sop before new entries.

Resources

• skills/kanchi-dividend-us-tax-accounting/scripts/build_tax_planning_sheet.py: tax planning sheet generator.
• skills/kanchi-dividend-us-tax-accounting/scripts/tests/test_build_tax_planning_sheet.py: tests for tax planning outputs.
• references/qualified-dividend-checklist.md: classification and holding-period checks.
• references/account-location-matrix.md: placement matrix by account type and instrument.
• references/annual-tax-memo-template.md: reusable memo structure.