kanchi-dividend-us-tax-accounting

SKILL.md

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:

Holding-level distribution classification table.

Account-location recommendation table with rationale.

Open-risk checklist for unresolved tax assumptions.

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.