Kanchi Dividend US Tax Accounting

Provide US dividend tax and account-location workflow for Kanchi-style income portfolios. Use when users ask about qualified vs ordinary dividends, 1099-DIV interpretation, REIT/BDC distribution treatment, holding-period checks, or taxable-vs-IRA account placement decisions for dividend assets.

No API

Download Skill Package (.skill) View Source on GitHub

Table of Contents

1. 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.

2. 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.

3. Prerequisites

Prepare holding-level inputs:

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

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/

4. Quick Start

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.

5. 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.

6. Resources

References:

  • skills/kanchi-dividend-us-tax-accounting/references/account-location-matrix.md
  • skills/kanchi-dividend-us-tax-accounting/references/annual-tax-memo-template.md
  • skills/kanchi-dividend-us-tax-accounting/references/qualified-dividend-checklist.md

Scripts:

  • skills/kanchi-dividend-us-tax-accounting/scripts/build_tax_planning_sheet.py