300 units of Sunoco 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: 300 units of Sunoco LP at $55/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: $17,078
Tax: -$340
Net: $16,738
Hold 5 Years, Then Sell
Distributions: $5,060
Dist. tax: -$298
Terminal FMV: $19,597
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $19,597
Tax eliminated: $1,829
Total: $24,359
Breakeven Price
$88/unit
Selling only makes sense above this price over a 5-year horizon.
Sell Now
Proceeds: $17,078
Tax: -$340
Net: $16,738
Hold 10 Years, Then Sell
Distributions: $12,944
Dist. tax: -$762
Terminal FMV: $23,275
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $23,275
Tax eliminated: $4,025
Total: $35,457
Breakeven Price
$134/unit
Selling only makes sense above this price over a 10-year horizon.
Sell Now
Proceeds: $17,078
Tax: -$340
Net: $16,738
Hold 15 Years, Then Sell
Distributions: $23,007
Dist. tax: -$1,880
Terminal FMV: $27,643
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $27,643
Tax eliminated: $6,151
Total: $48,770
Breakeven Price
$188/unit
Selling only makes sense above this price over a 15-year horizon.
Sell Now
Proceeds: $17,078
Tax: -$340
Net: $16,738
Hold 20 Years, Then Sell
Distributions: $35,851
Dist. tax: -$4,566
Terminal FMV: $32,832
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $32,832
Tax eliminated: $7,444
Total: $64,117
Breakeven Price
$251/unit
Selling only makes sense above this price over a 20-year horizon.
Bottom Line
Holding 19 more years and letting heirs inherit produces $47,379 more than selling today. Your heirs receive $32,832 with a fresh stepped-up basis, eliminating $7,444 in deferred taxes and ~$12,000 in §751 recapture. Selling would only make sense above $251.42/unit.
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Computed by lucasandersen.ai MLP Tax Simulator v0.1.0. 2026-04-03. Not tax advice.