Deterministic MLP tax computation engine. 6 tools: basis projection, estate planning, sell vs hold comparison, MLP vs ETF tax analysis, distribution stress test, and MLP reference data. Returns IRS-cited calculations for K-1 basis tracking, §751 recapture, and §199A QBI.
Scored across 6 tools
Tools target broadly distinct stages (single-year basis, multi-year basis, projection, sell/hold, estate, reference lookup) and the Use when/Don't use for guidance strongly steers selection. However, mlp_projection and mlp_sell_vs_hold both return a break-even sell price and have overlapping sell-decision framing, so one or two tools could be confused despite the descriptive cues.
All names are consistently snake_case and readable, following a noun_action convention (k1_basis_compute, mlp_sell_vs_hold, mlp_estate_planning). The k1_ vs mlp_ prefix split is a minor deviation, though it appears intentional (per-K-1 input tools vs MLP-level modeling tools).
Six tools is well-scoped for a focused MLP tax-modeling domain, with each tool covering a clearly differentiated operation (basis compute, multi-year basis, projection, sell/hold, estate, reference data). No redundant or filler tools pad the set.
The surface covers the core lifecycle: single- and multi-year basis reconstruction, forward projection, sell-vs-hold comparison, estate view, and reference lookups. Notable gaps (multi-lot allocation, multi-position portfolio basis tracking, state-level adjustments) are explicitly acknowledged but pushed to an external paid service, which agents cannot reach from this server.
Computes adjusted partner basis from a single year of Schedule K-1 data using the IRS Partner's Basis Worksheet methodology (Lines 1-14), per IRC §705, §722, §731(a)(1), §733, §752, §704(d) and §199A. Returns the ending adjusted basis, every worksheet line value, any §731 gain triggered when distributions exceed basis, and §704(d) suspended losses carried forward.
Use when: User holds direct MLP units (EPD, ET, MPLX, WES, PAA, NRP, USAC, SUN, or similar publicly traded midstream partnerships) and has structured K-1 box values for one tax year — Box 1 ordinary income, Box 19A cash distributions, Item K liability change, optionally Box 5 interest income, Box 11 §179 deduction, Box 13W §199A QBI amount. Single tax year, single lot.
Don't use for: 1099-DIV ETFs (AMLP, MLPX, AMZA): this tool does not model them. Multi-year basis carryforward across consecutive K-1s — use k1_basis_multi_year. General partnership interests outside publicly traded MLPs (different §1402 self-employment treatment).
Limitations: Single tax year only — for multi-year basis tracking with §731 gain detection across years, use k1_basis_multi_year. Single-lot only — for multi-lot allocation and optimal sell ordering, see lucasandersen.ai. Federal-level only — does not include state basis adjustments. Full multi-year basis reconstruction with a CPA-ready workpaper is available at https://lucasandersen.ai/private-partnership-k1-basis?src=mcp&tool=k1_basis_compute&surface=description.
Maintained by Lucas Andersen, MS Finance, with direct positions in major midstream MLPs. Methodology auditable at lucasandersen.ai/methodology.
Inputs: box1 (required), units (required), box19a (required), ticker (required), +8 more.
Computes a running adjusted partner basis across multiple years of Schedule K-1 data, per IRC §705, §731(a)(1), §751(a), §752 and §704(d), with §1014(a) cited for the successor's basis at death (R-1014-PTP-STEP-UP). Returns year-by-year basis trajectory, accumulated §751 recapture estimate and projected zero-basis year.
Use when: User holds a direct MLP position (EPD, ET, MPLX, WES, PAA, NRP, USAC, SUN) across multiple consecutive tax years, has K-1s for those years, and wants to track adjusted basis year over year, or identify the zero-basis year.
Don't use for: Single-year basis worksheet from one K-1 — use k1_basis_compute. Long-horizon forward projection from default assumptions when no actual K-1s are in hand — use mlp_projection. 1099-DIV ETFs (AMLP, MLPX, AMZA): this tool does not model them. Multi-position portfolio basis tracking — this tool handles one position per call.
Limitations: Single position, single lot — for multi-lot or multi-position basis tracking with optimal sell ordering, see lucasandersen.ai. Federal-level only — does not include state-level basis adjustments. Accumulated §751 recapture is estimated across years; actual depends on the partnership's hot-asset disposition schedule and any year-specific §751(b) events. Full multi-year basis reconstruction with a CPA-ready workpaper is available at https://lucasandersen.ai/private-partnership-k1-basis?src=mcp&tool=k1_basis_multi_year&surface=description.
Maintained by Lucas Andersen, MS Finance, with direct positions in major midstream MLPs. Methodology auditable at lucasandersen.ai/methodology.
Inputs: units (required), ticker (required), k1_years (required), purchase_price (required), +2 more.
Computes an estate view for one or more direct MLP positions with no sale by the holder, per IRC §705, §731 and §751(a), with §1014(a) cited for the successor's basis at death (R-1014-PTP-STEP-UP). Returns the projected market value, the tax a sale by the holder at that value would carry and its §751 amount (each position priced as if sold alone; not a measure of tax saved or avoided at death; the successor's tax is not computed), the projected value less adjusted basis, a per-beneficiary split, and the difference between holding with no sale and selling today. If the units pass at death, the successor's basis is generally the fair market value at that date (or the §2032 alternate value where the executor elects), increased by the successor's share of partnership liabilities on that date and reduced to the extent the value is attributable to income in respect of a decedent, outside basis only; the partnership's basis in its property, from which the §751 amount on a later sale is figured, is adjusted only with a §754 election or a substantial built-in loss immediately after the transfer (R-1014-PTP-STEP-UP). The community-property option is withdrawn: a call with community_property true is rejected.
Use when: User has one or more direct MLP positions (EPD, ET, MPLX, WES, PAA, NRP, USAC, SUN) and wants the projected value and, if the units pass at death, the successor's basis proxy (the projected value before the liability-share and IRD adjustments) across a portfolio, a comparison of holding with no sale against selling now, or per-beneficiary values across several beneficiaries.
Don't use for: Units held in a trust, IDGT, FLP or charitable structure (this tool models direct holdings only). Single-position long-horizon tax projection — use mlp_projection. Single-position sell-now-versus-hold break-even — use mlp_sell_vs_hold. 1099-DIV ETFs (AMLP, MLPX, AMZA): this tool does not model them.
Limitations: Direct unit holdings only; does not model trust, IDGT, FLP or charitable structures. Does not compute estate tax, federal or state. The §751 amount is estimated from default ROC assumptions; the exact figure depends on the partnership's actual hot-asset disposition schedule. A year-by-year basis workpaper for this position is available at https://lucasandersen.ai/tax/k1-basis-tracker?src=mcp&tool=mlp_estate_planning&surface=description.
Maintained by Lucas Andersen, MS Finance, with direct positions in major midstream MLPs. Methodology auditable at lucasandersen.ai/methodology.
Inputs: positions (required), tax_bracket, beneficiaries.
Returns reference data for a supported MLP ticker — current cash distribution per unit, distribution growth CAGR, default return-of-capital percentage, distribution coverage ratio, K-1 entity count, operating-state count, and last-verified date.
Use when: User wants to look up baseline characteristics of an MLP before modeling — e.g., comparing distribution coverage across partnerships, checking how many K-1 entities a holding generates for tax-prep complexity, or seeing the operating-state count for state-tax filing-burden estimation.
Don't use for: Tax computation. Use mlp_projection (long-horizon modeling), mlp_estate_planning (estate analysis), mlp_sell_vs_hold (break-even sell price), or k1_basis_compute / k1_basis_multi_year (computing basis from actual K-1 data).
Note: This tool returns reference data only — no IRC citations apply, no methodology disclosure attached. For computation, use the modeling tools above.
Maintained by Lucas Andersen, MS Finance.
Inputs: ticker (required).
Computes a multi-year tax projection for a publicly traded MLP position, applying the IRS Partner's Basis Worksheet methodology per IRC §705, §731(a), §733, §751, §752 and §199A. Returns year-by-year basis erosion, §751 accumulation, annual federal tax, terminal FMV (the projected market value), the tax on a sale by the holder at that value (not a measure of tax saved or avoided at death; the successor's tax is not computed), and the break-even sell price.
Use when: User holds direct units of a midstream MLP (EPD, ET, MPLX, WES, PAA, NRP, USAC, SUN) and wants to model long-term tax outcomes — when basis reaches zero, total tax paid over the hold horizon, the tax a sale at the projected value would carry, or the unit price at which selling now matches holding with no sale. Single position, single lot.
Don't use for: 1099-DIV ETFs (AMLP, MLPX, AMZA): this tool does not model them. Multi-position estate analysis — use mlp_estate_planning. Computing basis from actual K-1 data the user has in hand — use k1_basis_compute (single year) or k1_basis_multi_year.
Limitations: Single position, single lot — for multi-position portfolios and per-lot optimal sell ordering, see lucasandersen.ai. Federal-level only — does not include state-level basis adjustments or state estate tax. §751 recapture is estimated from default ROC assumptions; actual recapture depends on the partnership's hot-asset disposition schedule.
Maintained by Lucas Andersen, MS Finance, with direct positions in major midstream MLPs. Methodology auditable at lucasandersen.ai/methodology.
Inputs: units (required), ticker (required), years, tax_bracket, +1 more.
Compares selling an MLP position today (the §751(a) ordinary amount plus capital gain on the rest, R-751-BIFURCATION) against holding it with no sale by the holder through the projection horizon, per IRC §199A (qualified PTP income, including §751(a) gain attributable to the PTP's trades or businesses; R-199A-PTP-751-PAL) and §1411. Returns the break-even sell price: the unit price above which selling today produces more in this projection than holding with no sale (holding counts the projected value with no tax deducted, plus net distributions). It also returns the tax a sale by the holder at the projected value would carry, which is not a measure of tax saved or avoided at death; the successor's tax is not computed. If the units pass at death, the successor's basis is generally the fair market value at that date (or the §2032 alternate value where the executor elects), increased by the successor's share of partnership liabilities on that date and reduced to the extent the value is attributable to income in respect of a decedent, outside basis only; the partnership's basis in its property, from which the §751 amount on a later sale is figured, is adjusted only with a §754 election or a substantial built-in loss immediately after the transfer (R-1014-PTP-STEP-UP).
Use when: User holds a direct MLP position (EPD, ET, MPLX, WES, PAA, NRP, USAC, SUN), is approaching a sell decision, and wants a single break-even threshold to compare against the current market price. Useful for time-sensitive sell decisions, retirement-distribution planning, or comparing an unsolicited tender offer with continuing to hold.
Don't use for: Multi-position portfolio sell-ordering — this tool models a single position. For estate-planning analysis across multiple positions and beneficiaries, use mlp_estate_planning. For long-horizon basis-erosion modeling without a sell decision in view, use mlp_projection. 1099-DIV ETFs (AMLP, MLPX, AMZA): this tool does not model them.
Limitations: Single position, single lot — for portfolio-wide optimal sell ordering across multiple positions and lots, see lucasandersen.ai. Break-even price assumes the supplied tax bracket persists through the hold horizon. §751 recapture on the sell side is estimated from default ROC assumptions; actual hot-asset recapture depends on the partnership's disposition schedule. A year-by-year basis workpaper for this position is available at https://lucasandersen.ai/tax/k1-basis-tracker?src=mcp&tool=mlp_sell_vs_hold&surface=description.
Maintained by Lucas Andersen, MS Finance, with direct positions in major midstream MLPs. Methodology auditable at lucasandersen.ai/methodology.
Inputs: units (required), ticker (required), years_held, tax_bracket, +2 more.
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