lucasandersen.ai MLP & Partnership Tax Tools
70da2a3650223716
- endpoint
- https://api.lucasandersen.ai/mcp
- protocol
- streamable-http ·2024-11-05
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k1_basis_compute unknown never probed
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 (basis computation), §722 (initial basis), §731(a)(1) (gain on distribution exceeding basis), §733 (basis reduction), §752 (liability share allocation), §704(d) (loss limitation and suspended-loss carryforward), and §199A (QBI deduction). 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 — these use RIC structure, no K-1, different tax regime — use a standard cost-basis calculator instead). 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.
{ "type": "object", "required": [ "ticker", "units", "prior_basis", "box1", "box19a" ], "properties": { "box1": { "type": "number", "description": "K-1 Box 1: ordinary business income (loss)" }, "box2": { "type": "number", "description": "K-1 Box 2: net rental income" }, "box5": { "type": "number", "description": "K-1 Box 5: interest income" }, "box11": { "type": "number", "description": "K-1 Box 11: §179 / other deductions" }, "units": { "type": "number" }, "box13w": { "type": "number", "description": "K-1 Box 13W: §199A QBI amount" }, "box19a": { "type": "number", "description": "K-1 Box 19A: cash distributions" }, "ticker": { "enum": [ "EPD", "ET", "MPLX", "WES", "PAA", "NRP", "USAC", "SUN" ], "type": "string" }, "prior_basis": { "type": "number", "description": "Beginning-of-year adjusted basis in USD" }, "tax_bracket": { "type": "number" }, "liability_decrease": { "type": "number", "description": "§752(b) liability decrease in USD" }, "liability_increase": { "type": "number", "description": "§752(a) liability increase in USD" } } }arguments 67 linesk1_basis_multi_year unknown never probed
Computes a running adjusted partner basis across multiple years of Schedule K-1 data, per IRC §705 (basis computation), §731(a)(1) (gain on distributions exceeding basis), §751(a) (accumulated ordinary recapture), §752 (liability share allocation across years), §704(d) (suspended-loss carryforward), and §1014(a) (step-up if death today). Returns year-by-year basis trajectory, accumulated §751 recapture estimate, projected zero-basis year, §1014 step-up value if death today, and the broker-basis gap — the dollar amount by which a typical 1099-B understates true IRS-adjusted basis. 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, identify the zero-basis year, quantify the gap between broker-reported basis and true IRS basis, or project §1014 step-up value if death occurred today. 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 — RIC structure, no K-1, no basis-erosion mechanism; use a standard cost-basis calculator). 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.
{ "type": "object", "required": [ "ticker", "units", "purchase_price", "k1_years" ], "properties": { "units": { "type": "number" }, "ticker": { "enum": [ "EPD", "ET", "MPLX", "WES", "PAA", "NRP", "USAC", "SUN" ], "type": "string" }, "k1_years": { "type": "array", "items": { "type": "object", "required": [ "year", "box1", "box19a" ], "properties": { "box1": { "type": "number" }, "year": { "type": "number" }, "box11": { "type": "number" }, "box19a": { "type": "number" }, "liability_decrease": { "type": "number" }, "liability_increase": { "type": "number" } } }, "description": "Array of annual K-1 data, one per year held (max 50)" }, "tax_bracket": { "type": "number" }, "purchase_year": { "type": "number" }, "purchase_price": { "type": "number" } } }arguments 68 linesmlp_projection unknown never probed
Computes a multi-year tax projection for a publicly traded MLP position, applying the IRS Partner's Basis Worksheet methodology (Lines 1-14) per IRC §705 (basis computation), §731(a) (distributions exceeding basis), §733 (basis reduction), §751 (hot asset recapture), §752 (liability allocation), §1014 (stepped-up basis at death), and §199A (QBI deduction). Returns year-by-year basis erosion, §751 accumulation, annual federal tax, terminal FMV, §1014 step-up value at death, 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, deferred tax eliminated by §1014 step-up at death, or the unit price at which selling matches holding through inheritance. Single position, single lot. Don't use for: 1099-DIV ETFs (AMLP, MLPX, AMZA — these use RIC structure, pay corporate-level tax, and issue 1099-DIV instead of K-1; use a standard cost-basis calculator instead). 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.
{ "type": "object", "required": [ "ticker", "units" ], "properties": { "units": { "type": "number", "description": "Number of MLP units held" }, "years": { "type": "number", "description": "Projection horizon in years (1-50, default 20)" }, "ticker": { "enum": [ "EPD", "ET", "MPLX", "WES", "PAA", "NRP", "USAC", "SUN" ], "type": "string", "description": "MLP ticker symbol" }, "tax_bracket": { "type": "number", "description": "Federal marginal rate as decimal, e.g. 0.32 (default 0.32)" }, "purchase_price": { "type": "number", "description": "Purchase price per unit in USD (optional — defaults to reasonable estimate)" } } }arguments 39 linesmlp_estate_planning unknown never probed
Computes §1014 stepped-up basis and estate-planning analysis for one or more direct MLP positions held until death, per IRC §1014(a) (basis at death), §1014(b)(6) (community-property double step-up), §751(a) (ordinary recapture eliminated at death), §731 (distributions), and §705 (basis). Returns total deferred federal tax eliminated, §751 ordinary recapture eliminated, per-beneficiary inheritance split, community-property double-step-up amount when applicable, and the dollar advantage of holding to death versus selling today. Use when: User has one or more direct MLP positions (EPD, ET, MPLX, WES, PAA, NRP, USAC, SUN) and wants to quantify the §1014 step-up benefit for estate planning, compare holding to death versus selling now across a portfolio, model community-property double step-up for spouses in CA/TX/WA/etc., or compute per-beneficiary inheritance values across multiple heirs. Don't use for: Trust-based estate strategies (revocable trusts preserve §1014; irrevocable trusts and IDGTs typically destroy it — this tool models direct holdings only). Single-position long-horizon tax projection — use mlp_projection. Single-position sell-now-versus-hold-to-death break-even — use mlp_sell_vs_hold. 1099-DIV ETFs (AMLP, MLPX, AMZA — RIC structure receives §1014 step-up but has no §751 to eliminate because no K-1; the analysis is materially different). Limitations: Direct unit holdings only — does not model trust, IDGT, FLP, or charitable structures (these can destroy the §1014 benefit; for guidance on trust selection, see lucasandersen.ai). Federal-level only — does not include state estate tax. §751 recapture eliminated at death is estimated; 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.
{ "type": "object", "required": [ "positions" ], "properties": { "positions": { "type": "array", "items": { "type": "object", "required": [ "ticker", "units" ], "properties": { "units": { "type": "number" }, "ticker": { "enum": [ "EPD", "ET", "MPLX", "WES", "PAA", "NRP", "USAC", "SUN" ], "type": "string" }, "years_held": { "type": "number", "description": "Years held since purchase" }, "purchase_price": { "type": "number" } } }, "description": "Array of MLP positions to analyze (max 20)" }, "tax_bracket": { "type": "number" }, "beneficiaries": { "type": "number", "description": "Number of beneficiaries (default 1, max 20)" }, "community_property": { "type": "boolean", "description": "Whether positions are in a community property state (doubles step-up)" } } }arguments 55 linesmlp_sell_vs_hold unknown never probed
Compares selling an MLP position today (triggering §751(a) hot-asset ordinary recapture plus §731(a)(1) long-term capital gain) against holding the position until death (where §1014(a) step-up eliminates all deferred federal tax including §751 recapture), per IRC §1(h) (LTCG rates), §199A (QBI deduction on §751 ordinary), and §1411 (NIIT). Returns the break-even sell price — the unit price above which selling today produces more after-tax wealth than holding through inheritance. 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 evaluating whether an unsolicited tender offer is worth accepting versus continuing to hold for §1014 step-up. 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 — RIC structure has no §751 and no K-1, so the break-even logic does not apply; use a standard capital-gains calculator). 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.
{ "type": "object", "required": [ "ticker", "units" ], "properties": { "units": { "type": "number" }, "ticker": { "enum": [ "EPD", "ET", "MPLX", "WES", "PAA", "NRP", "USAC", "SUN" ], "type": "string" }, "years_held": { "type": "number", "description": "Years the position has been held (default 10)" }, "tax_bracket": { "type": "number" }, "purchase_price": { "type": "number" }, "years_to_project": { "type": "number", "description": "Years to project the hold scenario (default 10)" }, "community_property": { "type": "boolean" } } }arguments 42 linesmlp_info unknown never probed
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.
{ "type": "object", "required": [ "ticker" ], "properties": { "ticker": { "enum": [ "EPD", "ET", "MPLX", "WES", "PAA", "NRP", "USAC", "SUN" ], "type": "string" } } }arguments 21 lines
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