200 units of Natural Resource Partners — 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: 200 units of Natural Resource Partners at $120/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: $24,840
Tax: -$245
Net: $24,595
Hold 5 Years, Then Sell
Distributions: $2,400
Dist. tax: -$424
Terminal FMV: $28,504
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $28,504
Tax eliminated: $1,284
Total: $30,480
Breakeven Price
$160/unit
Selling only makes sense above this price over a 5-year horizon.
Sell Now
Proceeds: $24,840
Tax: -$245
Net: $24,595
Hold 10 Years, Then Sell
Distributions: $5,400
Dist. tax: -$954
Terminal FMV: $33,854
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $33,854
Tax eliminated: $2,728
Total: $38,300
Breakeven Price
$209/unit
Selling only makes sense above this price over a 10-year horizon.
Sell Now
Proceeds: $24,840
Tax: -$245
Net: $24,595
Hold 15 Years, Then Sell
Distributions: $8,400
Dist. tax: -$1,484
Terminal FMV: $40,208
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $40,208
Tax eliminated: $4,360
Total: $47,124
Breakeven Price
$263/unit
Selling only makes sense above this price over a 15-year horizon.
Sell Now
Proceeds: $24,840
Tax: -$245
Net: $24,595
Hold 20 Years, Then Sell
Distributions: $11,400
Dist. tax: -$2,014
Terminal FMV: $47,755
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $47,755
Tax eliminated: $6,216
Total: $57,141
Breakeven Price
$325/unit
Selling only makes sense above this price over a 20-year horizon.
Bottom Line
Holding 19 more years and letting heirs inherit produces $32,546 more than selling today. Your heirs receive $47,755 with a fresh stepped-up basis, eliminating $6,216 in deferred taxes and ~$8,000 in §751 recapture. Selling would only make sense above $324.61/unit.
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Computed by lucasandersen.ai MLP Tax Simulator v0.1.0. 2026-04-03. Not tax advice.