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+---
+alwaysApply: true
+description: Guide for when to use Server Actions vs API Routes in Next.js App Router
+---
+
+# Server Actions vs API Routes - Decision Guide
+
+## ✅ USE SERVER ACTIONS for:
+
+### Quick Actions & Mutations
+- **TaskCard actions**: `updateTaskStatus()`, `updateTaskTitle()`, `deleteTask()`
+- **Daily checkboxes**: `toggleCheckbox()`, `addCheckbox()`, `updateCheckbox()`
+- **User preferences**: `updateTheme()`, `updateViewPreferences()`, `updateFilters()`
+- **Simple CRUD**: `createTag()`, `updateTag()`, `deleteTag()`
+
+### Characteristics of Server Action candidates:
+- Simple, frequent mutations
+- No complex business logic
+- Used in interactive components (forms, buttons, toggles)
+- Need immediate UI feedback with `useTransition`
+- Benefit from automatic cache revalidation
+
+## ❌ KEEP API ROUTES for:
+
+### Complex Endpoints
+- **Initial data fetching**: `GET /api/tasks` with complex filters
+- **External integrations**: `POST /api/jira/sync` with complex logic
+- **Analytics & reports**: Complex data aggregation
+- **Public API**: Endpoints that might be called from mobile/external
+
+### Characteristics that require API Routes:
+- Complex business logic or data processing
+- Multiple service orchestration
+- Need for HTTP monitoring/logging
+- External consumption (mobile apps, webhooks)
+- Real-time features (WebSockets, SSE)
+- File uploads or special content types
+
+## 🔄 Implementation Pattern
+
+### Server Actions Structure
+```typescript
+// actions/tasks.ts
+'use server'
+
+import { tasksService } from '@/services/tasks';
+import { revalidatePath } from 'next/cache';
+
+export async function updateTaskStatus(taskId: string, status: TaskStatus) {
+  try {
+    const task = await tasksService.updateTask(taskId, { status });
+    revalidatePath('/'); // Auto cache invalidation
+    return { success: true, data: task };
+  } catch (error) {
+    return { success: false, error: error.message };
+  }
+}
+```
+
+### Component Usage with useTransition
+```typescript
+// components/TaskCard.tsx
+'use client';
+
+import { updateTaskStatus } from '@/actions/tasks';
+import { useTransition } from 'react';
+
+export function TaskCard({ task }) {
+  const [isPending, startTransition] = useTransition();
+  
+  const handleStatusChange = (status) => {
+    startTransition(async () => {
+      const result = await updateTaskStatus(task.id, status);
+      if (!result.success) {
+        // Handle error
+      }
+    });
+  };
+  
+  return (
+    <div className={isPending ? 'opacity-50' : ''}>
+      {/* UI with loading state */}
+    </div>
+  );
+}
+```
+
+## 🏗️ Migration Strategy
+
+When migrating from API Routes to Server Actions:
+
+1. **Create server action** in `actions/` directory
+2. **Update component** to use server action directly
+3. **Remove API route** (PATCH, POST, DELETE for mutations)
+4. **Simplify client** (remove mutation methods, keep GET only)
+5. **Update hooks** to use server actions instead of HTTP calls
+
+## 🎯 Benefits of Server Actions
+
+- **🚀 Performance**: No HTTP serialization overhead
+- **🔄 Cache intelligence**: Automatic revalidation with `revalidatePath()`
+- **📦 Bundle reduction**: Less client-side HTTP code
+- **⚡ UX**: Native loading states with `useTransition`
+- **🎯 Simplicity**: Direct service calls, less boilerplate
+
+## 🚨 Anti-patterns to Avoid
+
+- Don't use server actions for complex data fetching
+- Don't use server actions for endpoints that need HTTP monitoring
+- Don't use server actions for public API endpoints
+- Don't mix server actions with client-side state management for the same data
+
+Remember: Server Actions are for **direct mutations**, API Routes are for **complex operations** and **public interfaces**.
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