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 alloca...
Risk signalsHigh parameter count (12 properties)
Part of the MLP Tax Computation Engine server.
Free to start. No card required.
AI agents call k1_basis_compute to perform operations in MLP Tax Computation Engine. While the risk category is not fully classified, applying a rate limit gives you visibility into how often the tool is called and prevents unexpected bursts of activity from autonomous agents.
Applying a policy to k1_basis_compute gives you an audit trail of every call an AI agent makes. Even for low-risk tools, visibility into agent behaviour helps you debug issues, optimise workflows, and maintain compliance with your organisation's security requirements.
Apply a rate limit to control usage and monitor for unexpected behaviour.
{
"version": "1",
"default": "deny",
"tools": {
"k1_basis_compute": {
"limits": [
{
"counter": "k1_basis_compute_rate",
"window": "minute",
"max": 60,
"scope": "grant"
}
]
}
}
}See the full MLP Tax Computation Engine policy for all 6 tools.
These attack patterns abuse exactly the kind of access k1_basis_compute gives an agent. Each links to the full case and the policy that stops it:
Other other tools across the catalogue. The same approach applies to each: rate-limit and validate the arguments.
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. Maintained by Lucas Andersen, MS Finance, with direct positions in major midstream MLPs. Methodology auditable at lucasandersen.ai/methodology.. It is categorised as a Other tool in the MLP Tax Computation Engine MCP Server, which means it performs auxiliary operations.
Register the MLP Tax Computation Engine MCP server in PolicyLayer and add a rule for k1_basis_compute: allow, deny, rate-limit, or require approval. Point your MCP client at the PolicyLayer proxy URL and the rule is enforced on every call, before it reaches MLP Tax Computation Engine. Nothing to install.
k1_basis_compute is a Other tool with low risk. Read-only tools are generally safe to allow by default.
Yes. Add a rate_limit block to the k1_basis_compute rule in your PolicyLayer policy. For example, setting max: 10 and window: 60 limits the tool to 10 calls per minute. Rate limits are tracked per agent session and reset automatically.
Set action: deny in the PolicyLayer policy for k1_basis_compute. The AI agent will receive a policy violation error and cannot call the tool. You can also include a reason field to explain why the tool is blocked.
k1_basis_compute is provided by the MLP Tax Computation Engine MCP server (https://api.lucasandersen.ai/mcp). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.
Deterministic rules across all 6 MLP Tax Computation Engine tools. Per-identity grants. Full audit log. Live in minutes. Nothing to install.
Free to start. No card required.
4,600+ MCP servers and 31,000+ tools scanned and risk-classified.