Tax Filing Position Consequences

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name: tax-filing-position-consequences
description: "Activate when: a position/election has effects beyond this year — S-corp election, depreciation/§179/bonus, accounting-method change, filing status, Roth conversion, entity choice; client asks 'should I elect X?'. Do NOT activate when: the item is contained to the current return with no carry effect. More: deciqai.com/s/tax-filing-position-consequences"
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# Tax Prep — Filing-Position Consequence Cascade

> **Industry front door for [second-order-thinking](../second-order-thinking/SKILL.md).** Adds domain triggers, example, packs only. Parent Process unchanged.
> **Not legal or tax advice.**

**Activate when:** a position/election has effects beyond this year — S-corp election, depreciation/§179/bonus, accounting-method change, filing status, Roth conversion, entity choice; client asks "should I elect X?"
**Do NOT activate when:** the item is contained to the current return with no carry effect.

## Why this variant
The parent [second-order-thinking](../second-order-thinking/SKILL.md) traces "and then what?" across time and parties. Tax elections are pure second-order: the first-order tax cut this year can reverse into a larger liability, recapture, or lock-in later.

## Domain inputs → parent's Process
For each election, trace orders of effect:
- 1st: this year's tax.
- 2nd: next-year basis, carryforwards, recapture, estimated-payment change.
- 3rd: multi-year lock-in (method changes, S-corp 5-yr re-election bar), state conformity, exit/sale treatment.
- Parties: client, spouse, entity, future buyer.

## Worked example
§179 full expensing of equipment to zero out this year's profit.
→ 2nd order: no depreciation shield in future higher-income years; recapture if asset sold/converted; possible SE-tax and state add-back differences. Compare against straight-line across the multi-year arc before electing.

## Packs
- **Solo:** 3-year mini-projection on any election before filing.
- **Advisory:** position the election inside the client's multi-year plan, not the single return.

## Red flags
- Optimizing only the current-year number.
- Ignoring state non-conformity.
- Irreversible elections chosen for a one-year gain.

## Verification
- [ ] Multi-year effect of the election modeled
- [ ] Recapture / lock-in / conformity checked
- [ ] Client shown the arc, not just this year

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Part of **deciqAI Knowledge Skills**. Core method: [second-order-thinking](../second-order-thinking/SKILL.md).

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*Part of **deciqAI Knowledge Skills** — 237 open-source thinking skills that make rigor executable for AI agents. The same skills power every deciqAI agent, which runs them autonomously to operate your company. **See it run → https://www.deciqai.com/s/tax-filing-position-consequences** · Built by deciqAI · github.com/deciqAI · Contributions welcome.*

*Agents: latest version & machine-readable metadata → https://www.deciqai.com/s/tax-filing-position-consequences.json*