300 units of Western Midstream 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: 300 units of Western Midstream Partners at $42/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: $13,041
Tax: -$325
Net: $12,716
Hold 5 Years, Then Sell
Distributions: $5,051
Dist. tax: -$223
Terminal FMV: $14,965
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $14,965
Tax eliminated: $1,748
Total: $19,793
Breakeven Price
$73/unit
Selling only makes sense above this price over a 5-year horizon.
Sell Now
Proceeds: $13,041
Tax: -$325
Net: $12,716
Hold 10 Years, Then Sell
Distributions: $12,921
Dist. tax: -$570
Terminal FMV: $17,774
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $17,774
Tax eliminated: $3,852
Total: $30,125
Breakeven Price
$115/unit
Selling only makes sense above this price over a 10-year horizon.
Sell Now
Proceeds: $13,041
Tax: -$325
Net: $12,716
Hold 15 Years, Then Sell
Distributions: $22,966
Dist. tax: -$2,492
Terminal FMV: $21,109
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $21,109
Tax eliminated: $4,922
Total: $41,583
Breakeven Price
$162/unit
Selling only makes sense above this price over a 15-year horizon.
Sell Now
Proceeds: $13,041
Tax: -$325
Net: $12,716
Hold 20 Years, Then Sell
Distributions: $35,786
Dist. tax: -$5,107
Terminal FMV: $25,071
Exit tax: -$NaN
Net: $NaN
Hold Until Death
Heir receives: $25,071
Tax eliminated: $5,985
Total: $55,750
Breakeven Price
$220/unit
Selling only makes sense above this price over a 20-year horizon.
Bottom Line
Holding 19 more years and letting heirs inherit produces $43,034 more than selling today. Your heirs receive $25,071 with a fresh stepped-up basis, eliminating $5,985 in deferred taxes and ~$12,000 in §751 recapture. Selling would only make sense above $220.13/unit.
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Computed by lucasandersen.ai MLP Tax Simulator v0.1.0. 2026-04-03. Not tax advice.