500 units of Energy Transfer — breakeven price, tax comparison, §1014 step-up analysis.
This tool provides projections based on assumptions. It does not constitute tax, legal, or investment advice. Consult a qualified CPA or financial advisor before making decisions based on this output.
Position: 500 units of Energy Transfer at $19/unit
Tax assumptions: 32% bracket, MFJ, NIIT, §199A QBI deduction. Unit appreciation: 3.5%/year.
We computed three exit strategies for each holding period: sell now, hold and collect distributions, and hold until death (§1014 step-up). Every number comes from the IRS Partner's Basis Worksheet.
Sell Now
Proceeds: $9,832
Tax: -$255
Net: $9,577
Hold 5 Years, Then Sell
Distributions: $2,887
Dist. tax: -$169
Terminal FMV: $11,283
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $11,283
Tax eliminated: $1,361
Total: $14,001
Breakeven Price
$31/unit
Selling only makes sense above this price over a 5-year horizon.
Sell Now
Proceeds: $9,832
Tax: -$255
Net: $9,577
Hold 10 Years, Then Sell
Distributions: $7,011
Dist. tax: -$412
Terminal FMV: $13,401
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $13,401
Tax eliminated: $2,948
Total: $20,000
Breakeven Price
$45/unit
Selling only makes sense above this price over a 10-year horizon.
Sell Now
Proceeds: $9,832
Tax: -$255
Net: $9,577
Hold 15 Years, Then Sell
Distributions: $11,790
Dist. tax: -$781
Terminal FMV: $15,916
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $15,916
Tax eliminated: $4,582
Total: $26,925
Breakeven Price
$62/unit
Selling only makes sense above this price over a 15-year horizon.
Sell Now
Proceeds: $9,832
Tax: -$255
Net: $9,577
Hold 20 Years, Then Sell
Distributions: $17,332
Dist. tax: -$1,941
Terminal FMV: $18,903
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $18,903
Tax eliminated: $5,557
Total: $34,294
Breakeven Price
$81/unit
Selling only makes sense above this price over a 20-year horizon.
Bottom Line
Holding 19 more years and letting heirs inherit produces $24,717 more than selling today. Your heirs receive $18,903 with a fresh stepped-up basis, eliminating $5,557 in deferred taxes and ~$18,903 in §751 recapture. Selling would only make sense above $80.58/unit.
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Computed by lucasandersen.ai MLP Tax Simulator v0.1.0. 2026-04-03. Not tax advice.