500 units of Plains All American Pipeline — 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 Plains All American Pipeline at $20/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: $10,350
Tax: -$297
Net: $10,053
Hold 5 Years, Then Sell
Distributions: $4,064
Dist. tax: -$239
Terminal FMV: $11,877
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $11,877
Tax eliminated: $1,619
Total: $15,702
Breakeven Price
$35/unit
Selling only makes sense above this price over a 5-year horizon.
Sell Now
Proceeds: $10,350
Tax: -$297
Net: $10,053
Hold 10 Years, Then Sell
Distributions: $11,262
Dist. tax: -$662
Terminal FMV: $14,106
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $14,106
Tax eliminated: $3,651
Total: $24,706
Breakeven Price
$57/unit
Selling only makes sense above this price over a 10-year horizon.
Sell Now
Proceeds: $10,350
Tax: -$297
Net: $10,053
Hold 15 Years, Then Sell
Distributions: $21,839
Dist. tax: -$2,813
Terminal FMV: $16,753
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $16,753
Tax eliminated: $4,740
Total: $35,779
Breakeven Price
$84/unit
Selling only makes sense above this price over a 15-year horizon.
Sell Now
Proceeds: $10,350
Tax: -$297
Net: $10,053
Hold 20 Years, Then Sell
Distributions: $37,380
Dist. tax: -$6,064
Terminal FMV: $19,898
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $19,898
Tax eliminated: $5,850
Total: $51,214
Breakeven Price
$122/unit
Selling only makes sense above this price over a 20-year horizon.
Bottom Line
Holding 19 more years and letting heirs inherit produces $41,161 more than selling today. Your heirs receive $19,898 with a fresh stepped-up basis, eliminating $5,850 in deferred taxes and ~$19,898 in §751 recapture. Selling would only make sense above $122.08/unit.
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Computed by lucasandersen.ai MLP Tax Simulator v0.1.0. 2026-04-03. Not tax advice.