Kanchi Dividend Us Tax Accounting

interface:
  display_name: "Kanchi Dividend Us Tax Accounting"
  short_description: "Help with Kanchi Dividend Us Tax Accounting tasks"


# Account Location Matrix

Use this matrix to propose placement between taxable and tax-advantaged accounts.

## Baseline Placement Logic

| Instrument profile | Taxable account | Tax-advantaged account | Rationale |
|---|---|---|---|
| Qualified-dividend-heavy US equity | Usually preferred | Optional | Potentially better ongoing tax efficiency in taxable account |
| REIT-heavy income holdings | Less preferred | Often preferred | Distribution may include higher ordinary-income components |
| BDC/high-distribution structures | Less preferred | Often preferred | Tax treatment can be less favorable in taxable account |
| MLP (partnership units) | Case-by-case | Caution in tax-advantaged accounts | UBTI and K-1 complexity can make placement non-trivial |
| Broad index ETF with low turnover | Often acceptable | Also acceptable | Depends on overall asset-location design |

If MLP is outside mandate, mark it explicitly as `OUT-OF-SCOPE` and exclude from default allocation logic.

## Conflict Resolution Rules

When account-location recommendation conflicts with other needs:
1. Respect concentration and risk controls first.
2. Respect liquidity/withdrawal constraints second.
3. Optimize taxes third.

## Output Format

Return one line per holding:

```text
[Ticker] -> [Recommended Account] | Why: [one sentence]
```


# Annual Dividend Tax Planning Memo Template

```markdown
# Annual Dividend Tax Planning Memo ([Year])

## Filing Timeline
- Tax year:
- Filing deadline:
- Extension status (filed/planned/not needed):
- Expected filing date:

## Scope
- Accounts included:
- Holdings covered:
- Data sources used:

## Assumptions
- Rule set version/date:
- Missing data assumptions:

## Distribution Classification Summary
| Ticker | Account | Ordinary (est.) | Qualified (est.) | REIT/other components | Confidence |
|---|---|---:|---:|---|---|
| ... | ... | ... | ... | ... | High/Med/Low |

## Account-Location Actions
| Ticker | Current location | Proposed location | Reason |
|---|---|---|---|
| ... | ... | ... | ... |

## Open Risks / Follow-Ups
1. ...
2. ...
3. ...

## Advisor Questions
1. ...
2. ...
```

Keep the memo concise and assumption-driven.


# Qualified Dividend Checklist (US)

Use this checklist for planning assumptions.

## Classification Pass

For each holding, verify:
1. Distribution is potentially eligible for qualified treatment by instrument/type.
2. Shares meet required holding-period test around the ex-dividend date window.
3. No known disqualifying condition in the current fact pattern.

If any item is uncertain, mark as `ASSUMPTION-REQUIRED`.

## Holding-Period Rules (US Federal, Common Planning Baseline)

- Common stock baseline: hold shares for **more than 60 days** during the **121-day period** that starts **60 days before** the ex-dividend date.
- Preferred stock (certain long-period dividends): often uses **more than 90 days** during a **181-day period** starting **90 days before** ex-dividend date.

Use current IRS guidance as source of truth:
- IRS Publication 550.
- IRS Form 1099-DIV instructions.

## Practical Data Fields

Track these fields for each position:
- Ticker
- Account type
- Ex-dividend date
- Purchase date(s)
- Disposal date(s), if any
- Days held in required window
- Preliminary classification (`qualified-likely`, `ordinary-likely`, `unknown`)

## Common Pitfalls

- Assuming all common-stock dividends will be qualified without holding-period verification.
- Ignoring short holding periods caused by frequent tactical trading.
- Treating REIT/BDC distributions as identical to standard qualified-dividend flows.
- **Modeling special / variable dividends as steady qualified income**
  (WS-8 hand-off from `kanchi-dividend-sop`). When the upstream
  `dividend_basis` carries `special_dividend_flag` or
  `variable_policy_flag` (e.g. ORI annual specials, CALM variable policy)