Yes, Sunoco LP (SUN) issues a Schedule K-1 to all unitholders. But here's the part that catches people: if you also own Energy Transfer (ET), you already receive a SUN K-1 inside your ET tax package. Owning both means two separate SUN K-1s — and they are not duplicates.
By Lucas Andersen — Last updated April 9, 2026
Energy Transfer’s K-1 package contains three sub-entity K-1s: ET itself, USA Compression Partners (USAC), and Sunoco LP (SUN). If you own ET, you already receive a SUN K-1 — automatically, without owning SUN directly. If you ALSO own SUN units in your brokerage account, you receive a second SUN K-1 with a different EIN. These are not duplicates. They represent two separate ownership interests with two separate basis calculations, two separate §469(k) passive activity canisters, and two separate suspended loss balances.
The ET-sourced SUN K-1 reflects your indirect interest through ET’s ownership of SUN units. The direct SUN K-1 reflects your personal units. The EINs differ because ET reports its consolidated sub-entities under its own filings. Selling your ET units disposes of the indirect SUN interest (releasing its suspended losses under §469(g)), but does NOT affect your direct SUN position. Selling your direct SUN units is a completely independent disposition.
| Attribute | ET-Sourced SUN K-1 | Direct SUN K-1 |
|---|---|---|
| Source | Inside ET tax package | taxpackagesupport.com/sunocolp |
| EIN | ET’s consolidated entity EIN | Sunoco LP’s standalone EIN |
| Basis tracking | Separate — part of ET basis hierarchy | Separate — your purchase price of SUN units |
| §469(k) canister | Separate suspended loss pool | Separate suspended loss pool |
| Tax software entry | Enter as its own K-1 (PTP checked) | Enter as its own K-1 (PTP checked) |
| Disposition trigger | Selling ET disposes of this interest | Selling direct SUN disposes of this interest |
Sunoco LP K-1s are typically available by mid-March. The 2024 K-1 was available March 10, 2025. If you own SUN directly, download at taxpackagesupport.com/sunocolp (phone: (844) 289-8131). If you own ET only, the SUN K-1 arrives inside the ET package — check taxpackagesupport.com/energytransfer. The ET package sometimes arrives a few days later than standalone SUN K-1s because it consolidates three entities.
SUN is a motor fuel distribution MLP operating across 40+ US states. It distributes gasoline, diesel, and other fuels to convenience stores, independent dealers, and commercial customers. This is NOT a pipeline or midstream company. The distinction matters for tax purposes: fuel distribution generates higher ordinary business income (Box 1) than fee-based pipeline operations, which means (1) higher UBTI risk in IRAs and (2) Box 1 is more frequently positive, creating taxable income in years when pipeline MLPs show net losses. SUN’s K-1 income tends to be more volatile and more commodity-sensitive than midstream peers like EPD or WES.
Initial purchase: 200 units × $52 = $10,400 basis. SUN distributed approximately $3.66/unit in 2025 ($0.8976 Q1, $0.9088 Q2, $0.9202 Q3, $0.9317 Q4). At illustrative 65–80% ROC, basis erodes approximately $2.38–$2.93 per unit per year. After 5 years at the midpoint (~$2.60/unit/year): IRS-adjusted basis is approximately $7,800 vs broker’s $10,400 — a $2,600 gap (25%). Total cash collected: 200 × $3.66 × 5 = $3,660. If sold at $55/unit after 5 years: broker reports gain of $600 ($11,000 − $10,400), but IRS-adjusted gain is $3,200 ($11,000 − $7,800), plus §751 ordinary income on accumulated depreciation. The broker’s number understates your actual tax liability by over 400%.
SUN carries higher UBTI risk than typical midstream MLPs. Fuel distribution generates more ordinary business income (K-1 Box 1) than fee-based pipeline operations. If UBTI exceeds $1,000 in a tax year, your IRA custodian must file Form 990-T and pay UBTI tax from IRA assets. If you hold both ET and SUN in the same IRA, UBTI stacks from multiple K-1s — ET’s sub-entity SUN allocation plus your direct SUN K-1 could push aggregate UBTI above the threshold even if neither alone would. A taxable brokerage account is almost always better for fuel distribution MLPs.
SUN operates in 40+ states. During normal holding years, most state income allocations are de minimis — $5 to $50 per state — and fall below individual state filing thresholds. In the year you sell, however, disposition gains under §751 are allocated across ALL operating states based on SUN’s apportionment factors. A $3,000 §751 gain could generate filing obligations in 15–25 states simultaneously. Each non-resident state return costs $30–$200 in software or preparer fees. See MLP state filing requirements.
1. Thinking two SUN K-1s are duplicates. They have different EINs. Enter both in your tax software as separate K-1s with the PTP box checked. 2. Treating SUN like a pipeline MLP for UBTI analysis. Fuel distribution generates more Box 1 income. Apply pipeline-MLP UBTI thresholds and you underestimate the risk. 3. Underestimating the sale-year state filing burden. During holding years you file zero state returns for SUN. In the sale year you may file 20+. 4. Confusing SUN the MLP with Sunoco gas stations. SUN is the fuel distribution company, not the retail brand. The gas stations are independently operated.