5-MLP portfolio with 2 beneficiaries — §1014 step-up analysis, per-position inheritance detail.
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.
Portfolio: EPD, ET, MPLX, WES, PAA — $98,350 total invested, 2 beneficiaries
Tax: 32% bracket, MFJ, NIIT. 20-year projection. Standard position sizes.
Taxes Eliminated by §1014 Step-Up
$48,535
Deferred tax wiped: $48,535 | §751 recapture wiped: ~$110,801
IRC §1014(a): basis resets to fair market value at death
| Ticker | Units | Current Basis | Stepped-Up (FMV) | Tax Eliminated | Per Heir (units) | Per Heir (basis) |
|---|---|---|---|---|---|---|
| EPD | 1,000 | $0.00 | $74,617 | $18,268 | 500 | $37,308 |
| ET | 500 | $0.00 | $18,903 | $5,557 | 250 | $9,452 |
| MPLX | 500 | $0.00 | $57,206 | $12,875 | 250 | $28,603 |
| WES | 300 | $0.00 | $25,071 | $5,985 | 150 | $12,536 |
| PAA | 500 | $0.00 | $19,898 | $5,850 | 250 | $9,949 |
Sell Today, Leave Cash
$147,160
After paying $48,535 in taxes
Hold & Let Heirs Inherit
$195,695
$48,535 more — no tax
Each of 2 Beneficiaries Receives
$97,848 in MLP units
at $97,848 stepped-up basis
Heir sells next day? Tax = $0. Basis = market value.
lucasandersen.ai
Your heirs inherit $195,695 with a fresh stepped-up basis, eliminating $48,535 in deferred taxes and ~$110,801 in §751 recapture. Split 2 ways, each beneficiary receives ~$97,848 with a $97,848 cost basis. Holding and letting heirs inherit is worth $48,535 more than selling today and leaving cash.
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Computed by lucasandersen.ai MLP Tax Simulator v0.1.0. 2026-04-03. Not tax advice.