500 units of MPLX LP — 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 MPLX LP at $57.50/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: $29,756
Tax: -$619
Net: $29,137
Hold 5 Years, Then Sell
Distributions: $10,758
Dist. tax: -$632
Terminal FMV: $34,146
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $34,146
Tax eliminated: $3,486
Total: $44,272
Breakeven Price
$97/unit
Selling only makes sense above this price over a 5-year horizon.
Sell Now
Proceeds: $29,756
Tax: -$619
Net: $29,137
Hold 10 Years, Then Sell
Distributions: $30,715
Dist. tax: -$1,806
Terminal FMV: $40,555
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $40,555
Tax eliminated: $8,222
Total: $69,464
Breakeven Price
$159/unit
Selling only makes sense above this price over a 10-year horizon.
Sell Now
Proceeds: $29,756
Tax: -$619
Net: $29,137
Hold 15 Years, Then Sell
Distributions: $61,562
Dist. tax: -$7,798
Terminal FMV: $48,166
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $48,166
Tax eliminated: $10,645
Total: $101,930
Breakeven Price
$239/unit
Selling only makes sense above this price over a 15-year horizon.
Sell Now
Proceeds: $29,756
Tax: -$619
Net: $29,137
Hold 20 Years, Then Sell
Distributions: $109,241
Dist. tax: -$17,773
Terminal FMV: $57,206
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $57,206
Tax eliminated: $12,875
Total: $148,674
Breakeven Price
$354/unit
Selling only makes sense above this price over a 20-year horizon.
Bottom Line
Holding 19 more years and letting heirs inherit produces $119,537 more than selling today. Your heirs receive $57,206 with a fresh stepped-up basis, eliminating $12,875 in deferred taxes and ~$20,000 in §751 recapture. Selling would only make sense above $353.94/unit.
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Computed by lucasandersen.ai MLP Tax Simulator v0.1.0. 2026-04-03. Not tax advice.