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 carryforwar...
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_multi_year 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_multi_year 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_multi_year": {
"limits": [
{
"counter": "k1_basis_multi_year_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_multi_year 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 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. 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_multi_year: 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_multi_year 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_multi_year 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_multi_year. 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_multi_year 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.
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