400 units of USA Compression 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: 400 units of USA Compression Partners at $28/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: $11,592
Tax: -$293
Net: $11,299
Hold 5 Years, Then Sell
Distributions: $3,360
Dist. tax: -$148
Terminal FMV: $13,302
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $13,302
Tax eliminated: $1,490
Total: $16,514
Breakeven Price
$45/unit
Selling only makes sense above this price over a 5-year horizon.
Sell Now
Proceeds: $11,592
Tax: -$293
Net: $11,299
Hold 10 Years, Then Sell
Distributions: $7,560
Dist. tax: -$333
Terminal FMV: $15,799
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $15,799
Tax eliminated: $3,055
Total: $23,026
Breakeven Price
$65/unit
Selling only makes sense above this price over a 10-year horizon.
Sell Now
Proceeds: $11,592
Tax: -$293
Net: $11,299
Hold 15 Years, Then Sell
Distributions: $11,760
Dist. tax: -$518
Terminal FMV: $18,764
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $18,764
Tax eliminated: $4,708
Total: $30,006
Breakeven Price
$87/unit
Selling only makes sense above this price over a 15-year horizon.
Sell Now
Proceeds: $11,592
Tax: -$293
Net: $11,299
Hold 20 Years, Then Sell
Distributions: $15,960
Dist. tax: -$1,281
Terminal FMV: $22,286
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $22,286
Tax eliminated: $5,886
Total: $36,965
Breakeven Price
$108/unit
Selling only makes sense above this price over a 20-year horizon.
Bottom Line
Holding 19 more years and letting heirs inherit produces $25,666 more than selling today. Your heirs receive $22,286 with a fresh stepped-up basis, eliminating $5,886 in deferred taxes and ~$16,000 in §751 recapture. Selling would only make sense above $108/unit.
Run your own numbers in the Portfolio Simulator →
Computed by lucasandersen.ai MLP Tax Simulator v0.1.0. 2026-04-03. Not tax advice.