Yes. Sunoco LP (SUN) issues a Schedule K-1; if you also own Energy Transfer (ET), a second SUN K-1 arrives inside the ET tax package.
See What Happens Next
The Double K-1 Problem: ET + SUN
This section exists because this question comes up every tax season. If you own Energy Transfer (ET), you already have a Sunoco LP K-1.
Energy Transfer's K-1 package includes three sub-entities. Sunoco LP is one of them. You receive a SUN K-1 through your ET holding — it reflects your pro-rata share of SUN's income, deductions, and distributions as allocated through ET.
If you also own SUN directly — purchased separately on the NYSE — you have a second, completely independent SUN K-1. These two K-1s have:
Two SUN K-1s — What's Different
SUN K-1 via ET
- EIN: ET-allocated entity
- Basis: derived from your ET position
- Passive activity: part of ET's PTP basket
- Entered as one of ET's three K-1s
SUN K-1 (Direct Holding)
- EIN: SUN's own entity
- Basis: from your SUN purchase price
- Passive activity: separate SUN §469(k) basket
- Entered as its own standalone K-1
Warning
Do NOT combine these. Do not enter only one. Do not assume one is a duplicate. They report different EINs, different basis amounts, and represent separate passive activity "canisters" under §469(k). If you enter only one K-1, your basis is wrong on both positions.
When to Expect Your SUN K-1
2026 tax year (2027 season): not yet announced.
2025 tax year (2026 season): available at taxpackagesupport.com/sunocolp, phone 1-844-289-8131. This issuer posts its package without an announced date, so this row is kept as current as possible. Source · checked September 22, 2026
How to access your SUN K-1:
- Tax Package Support: taxpackagesupport.com/sunocolp
- Phone: 1-844-289-8131
- You will need your SSN and the number of units held at year end
Key Insight
If you also own ET, your SUN-through-ET K-1 arrives as part of the Energy Transfer package. Your direct SUN K-1 comes separately through Tax Package Support. They may arrive on different dates — wait for both before filing.
📅 Your 2025 SUN K-1 is out now — enter this year's numbers before you file.
→ Update your basis in the K-1 TrackerWhat Sunoco LP Does — Fuel Distribution, Not Pipelines
Sunoco LP is not a midstream pipeline MLP. It is a motor fuel distribution company — the wholesale business that gets gasoline, diesel, and other motor fuels from refineries to convenience stores, independent dealers, and commercial customers across more than 40 US states.
This distinction matters for tax purposes in two ways:
- State filing footprint is enormous. Pipeline MLPs typically operate in 5–10 states. SUN's fuel distribution network spans 40+ states, which means your K-1 state schedule may allocate income to dozens of states. Most allocations are tiny — but in the year you sell, disposition gains spread across all of them.
- UBTI profile is different. Fuel distribution generates more ordinary business income than fee-based pipeline operations. This means higher UBTI risk for IRA holders compared to pipeline MLPs like EPD or MPLX.
Key Numbers
SUN Distribution Profile and Basis Erosion
Sunoco LP has been steadily increasing its quarterly distribution throughout 2025:
2025 Distribution History
Worked Example: 200 SUN Units at $52
Purchase: 200 units × $52 = $10,400 initial basis
2025 distributions: $3.66/unit = $732 total
Approximate ROC: SUN's ROC percentage varies — verify against your actual K-1. At an illustrative 65–80% ROC, roughly $2.35–$2.89/unit per year reduces your basis directly.
The gap: Broker shows $10,400. IRS basis is approximately $7,800. That's a $2,600 difference — a 25% gap after 5 years.
Track your SUN cost basis
Enter your SUN K-1 data year by year. If you also own ET, track both SUN positions separately — the tool handles multi-position tracking.
In the K-1 tracker, typing your numbers in uploads nothing; an uploaded K-1 PDF is read by a third-party AI provider. Privacy
Open K-1 Basis Tracker (free)📬 Get notified when next year's SUN K-1 drops — plus annual filing reminders and basis tracking tips.
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Calculate Your SUN Basis
Enter data from your SUN K-1 to calculate your adjusted basis for one year. If you have two SUN K-1s (direct + through ET), calculate each separately.
Sunoco LP Quick Basis Calculator
Enter your K-1 data to calculate your adjusted basis using the IRS worksheet
SUN in an IRA: Higher UBTI Risk Than Pipeline MLPs
Most MLP IRA guidance focuses on midstream pipeline companies where UBTI risk is moderate. SUN is different. Fuel distribution operations tend to generate more ordinary business income (Box 1) than fee-based pipeline operations.
If your SUN K-1 Box 1 allocation exceeds $1,000 (combined across all partnerships in the same IRA at the same trustee), your IRA must file Form 990-T and pay tax at trust rates — up to 37% at just $14,451 of UBTI. And SUN's growing distributions may push income allocations higher each year.
Warning
If you hold both ET and SUN in the same IRA: You may be stacking UBTI from multiple K-1s without realizing it. The ET package includes SUN UBTI, and your direct SUN holding adds more. Monitor the combined Box 1 totals across all K-1s in that IRA. A taxable account is almost always better for fuel distribution MLPs.
§751 Recapture and State Filing
§751 recapture: SUN owns depreciable fuel distribution infrastructure — terminals, fleet assets, and storage facilities. Depreciation flowing through your K-1 accumulates as §751 recapture. When you sell, a portion of your gain is recharacterized as ordinary income (up to 37%). See the §751 deep dive.
State filing: SUN's fuel distribution network operates in 40+ US states. This creates the widest state filing footprint of any MLP in this guide collection. During normal holding years, most state allocations are negligible. But in the year you sell, disposition gain is allocated across every operating state — potentially triggering dozens of state return obligations.
Key Insight
Practical approach: Don't file 40 state returns during holding years. Focus on your home state and any state with allocated income above $500–1,000. But budget for significant state filing costs in the year of disposition. See MLP State Filing Requirements.
Common SUN K-1 Mistakes
- Thinking your two SUN K-1s are duplicates: If you own ET and SUN, you have two separate K-1s with SUN's name. They have different EINs and different amounts. Enter both. Discarding one means your basis is wrong on both positions. → Track both SUN positions separately
- Treating SUN like a pipeline MLP for UBTI purposes: Fuel distribution generates more Box 1 income than fee-based pipeline operations. If you hold SUN in an IRA, monitor the $1,000 UBTI threshold more closely than you would for EPD or MPLX. → MLP in an IRA: UBTI rules
- Underestimating state filing in the year of sale: SUN operates in 40+ states. During holding years, this barely matters. The year you sell, it matters a lot. Budget $2,000+ for state return preparation if selling a meaningful SUN position. → MLP state filing requirements
- Confusing SUN the MLP with Sunoco gas stations: SUN is the wholesale fuel distributor, not the retail brand. This confusion doesn't affect your taxes, but it matters when researching the company — the gas stations are independently operated.
- Not tracking the ET relationship: Energy Transfer is the majority owner of SUN. If ET restructures or modifies its SUN ownership, it could affect your K-1 allocations. Track both relationships. → Energy Transfer K-1 guide
Frequently Asked Questions
Yes. Sunoco LP (SUN) is a master limited partnership. All unitholders receive a Schedule K-1 (Form 1065). Distributions are reported through the K-1, not a 1099-DIV.
Because Energy Transfer's K-1 package includes three sub-entities, and Sunoco LP is one of them. Your ET K-1 package contains a SUN K-1 that reflects your pro-rata share through ET. This is NOT a mistake or a duplicate. If you also own SUN directly, you will have two separate SUN K-1s with different EINs and different basis amounts. Enter both in your tax software.
Sunoco LP's K-1 tax packages are available at taxpackagesupport.com/sunocolp, phone 1-844-289-8131. This issuer posts its package without an announced date, so this row is kept as current as possible; Sunoco mails paper copies in mid-March each year and posts the data online through Tax Package Support. The current season's status is in the release-date section above.
Sunoco LP distributed approximately $3.66/unit in 2025 ($0.8976 in Q1 increasing to $0.9317 in Q4). The portion classified as return of capital directly reduces your cost basis. At SUN's distribution level, basis erosion is meaningful — verify the exact ROC split against your actual K-1.
Sunoco LP is the fuel DISTRIBUTION company — it distributes motor fuel to convenience stores, independent dealers, and commercial customers in 40+ US states. It is not the gas station brand itself (those are independently operated). The MLP structure covers the wholesale distribution business, which is why it generates a K-1.
SUN carries higher UBTI risk than typical midstream MLPs. Fuel distribution operations tend to generate more ordinary business income (Box 1) than fee-based pipeline MLPs. If your Box 1 allocation exceeds $1,000, your IRA must file Form 990-T and pay tax at trust rates. Monitor this annually — SUN's growing distributions may push UBTI allocations higher over time.
Disclaimer: This content is for educational and informational purposes only. It does not constitute tax, legal, or financial advice. MLP taxation involves complex rules including basis tracking, §751 recapture, passive activity limitations, and multi-state filing. Consult a qualified tax professional before making tax or investment decisions.
Lucas Andersen is not a CPA, Enrolled Agent, or tax attorney. Information reflects rules as of the date published and may change. Always verify with current IRS guidance.