Does Sunoco LP issue a K-1?

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.

I own Energy Transfer (ET) — why do I also have a Sunoco K-1?

Energy Transfer's K-1 package includes three sub-entities, and Sunoco LP is one of them. If you also own SUN directly, you will have two separate SUN K-1s with different EINs. These are NOT duplicates. Enter both in your tax software.

How do SUN distributions affect my cost basis?

Sunoco LP distributed approximately $3.61/unit in 2025. The portion classified as return of capital directly reduces your cost basis each year.

Is Sunoco LP the same as the Sunoco gas stations?

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 retail gas station brand itself.

Is SUN safe to hold in an IRA?

SUN carries higher UBTI risk than typical midstream MLPs. Fuel distribution generates more Box 1 income. If UBTI exceeds $1,000, your IRA must file Form 990-T. A taxable account is almost always better for fuel distribution MLPs.

Are my two SUN K-1s duplicates?

No. If you own both Energy Transfer (ET) and Sunoco LP (SUN) directly, you receive two separate SUN K-1s with different EINs. One comes through your ET tax package, the other directly from SUN. They represent separate ownership interests with separate basis calculations. Enter both in your tax software.

Is Sunoco LP the same as a pipeline MLP for UBTI purposes?

No. Sunoco LP is a fuel distribution company, not a pipeline operator. Fuel distribution generates more ordinary business income (Box 1) than fee-based pipeline operations, creating higher UBTI risk. If you hold SUN in an IRA and Box 1 exceeds $1,000, your IRA must file Form 990-T. If you also hold ET in the same IRA, UBTI stacks from multiple K-1s.

How many states do I need to file in because I own Sunoco LP?

SUN operates across 40 or more US states. During normal holding years, most allocations are de minimis and fall below filing thresholds. However, in the year you sell, disposition gains are allocated across all operating states, potentially triggering filing requirements in dozens of states.

Sunoco LP K-1 2025: Tax Guide & Cost Basis Tracking

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 March 6, 2026

The Double K-1 Problem: ET + SUN

If you own Energy Transfer (ET), you already have a Sunoco LP K-1. ET’s K-1 package includes three sub-entities, and SUN is one of them. If you ALSO own SUN directly, you have two separate SUN K-1s with different EINs, different basis amounts, and separate §469(k) passive activity baskets. Do NOT combine them. Do not enter only one. They are not duplicates.

When to Expect Your SUN K-1

Sunoco LP K-1s are typically available by mid-March. The 2024 K-1 was available March 10, 2025. Download at taxpackagesupport.com/sunocolp. Phone: (844) 289-8131.

What Sunoco LP Does — Fuel Distribution, Not Pipelines

SUN is a motor fuel distribution MLP operating across 40+ US states. It distributes gasoline, diesel, and other fuels to convenience stores, dealers, and commercial customers. This is NOT a pipeline or midstream company. The fuel distribution business creates a massive state filing footprint and higher UBTI risk than pipeline MLPs.

Distribution & Basis Erosion

SUN distributed approximately $3.66/unit in 2025 ($0.8976 Q1, $0.9088 Q2, $0.9202 Q3, $0.9317 Q4). Worked example: 200 units at $52 ($10,400 basis). At illustrative 65–80% ROC, basis erodes ~$2.60/unit per year. After 5 years, IRS-adjusted basis is approximately $7,800 vs broker’s $10,400 — a $2,600 gap (25%).

UBTI Risk in IRAs

SUN carries higher UBTI risk than typical midstream MLPs. Fuel distribution generates more ordinary business income than fee-based pipeline operations. If Box 1 exceeds $1,000, your IRA must file Form 990-T. If you hold both ET and SUN in the same IRA, UBTI stacks from multiple K-1s.

Common SUN Mistakes

Thinking two SUN K-1s are duplicates (they have different EINs). Treating SUN like a pipeline MLP for UBTI purposes. Underestimating the 40-state filing obligation in the year of sale. Confusing SUN the MLP with Sunoco gas stations (independently operated).