IRS Question 1099-K (Ticket Resale through SU, PayPal, Venmo)

[TexanMark]

So this used to not be an issue for most of us...now it might be. Especially if you reaped big bucks for Notre Dame Tickets.

I just sold 3 Louisville tix through SU's ticket exchange. I got a notice...If I sell $600+ in gross transactions in 2022 it will now generate a Form 1099-K. This used to be $20,000 before it kicked in. Sigh...

1099-K Form: Answers to Some Common Questions

The answers below to common questions are for information purposes only. Ticketmaster cannot provide tax advice. If you have questions about your taxes, you should consult your tax advisor. How d...

help.ticketmaster.com

So as an individual or joint filer how difficult is this? From a non business owner perspective. Also, it your tickets cost $800 total and you sold them for $900 total ($100 gain) how is that treated vs a loss of $100

Oh and this can apply to PayPal and Venmo transactions if they send them to you like a business transaction. Friends and Family transactions it appears is exempt.

Understanding Your Form 1099-K | Internal Revenue Service

Form 1099-K reports payments from payment apps or online marketplaces when the gross payment amount is more than $600 and from credit, debit or stored-value cards. Use it to help figure and report your correct income on your tax return.

www.irs.gov

I hope we have a few folks here that can lend some guidance. I have now clue if this is no big deal or a huge PITA like getting a Schedule K-1

 

[HRE Otto IV]

From what I can tell you cannot deduct the cost of the ticket nor any fees paid to the 3rd party site. So if you bought tickets for $500 from SU and sold them for $600 on Stubhub, the government treats it as $600 income and not $10.

 

[Trueblue25]

From what I can tell you cannot deduct the cost of the ticket nor any fees paid to the 3rd party site. So if you bought tickets for $500 from SU and sold them for $600 on Stubhub, the government treats it as $600 income and not $10.

Even if you provide evidence that this was an ordinary ticket resale for a small profit?

Gonna be a fun year for CPA’s.

 

[SuFTW]

From what I can tell you cannot deduct the cost of the ticket nor any fees paid to the 3rd party site. So if you bought tickets for $500 from SU and sold them for $600 on Stubhub, the government treats it as $600 income and not $10.

I don’t think this is correct.

 

[HRE Otto IV]

I don’t think this is correct.

The ticket venue will only send gross to the IRS. Even if the IRS allows for deductions, you need to the have receipts for each sale showing the fees, and you need to get proof of the face value. If it is premium seating the face won't include the donation. So best case it is a PIA to prove how much you paid, and you are closer to net.

 

[Chip]

From what I can tell you cannot deduct the cost of the ticket nor any fees paid to the 3rd party site. So if you bought tickets for $500 from SU and sold them for $600 on Stubhub, the government treats it as $600 income and not $10.

If you get audited from the IRS because you were forced to report the $600, and offset it with $500 of expenses for the tickets, do not play the lottery for awhile.

 

[SuFTW]

The ticket venue will only send gross to the IRS. Even if the IRS allows for deductions, you need to the have receipts for each sale showing the fees, and you need to get proof of the face value. If it is premium seating the face won't include the donation. So best case it is a PIA to prove how much you paid, and you are closer to net.

That’s different from what you said earlier.
It’s not hard to have receipts these days, sales are electronic. Face value also not that difficult. A 1099-K is not a statement of income, it is a statement of revenue. Donations are reported elsewhere and could be considered a cost of acquisition if you resold as a business.

 

[elimunelson]

If you get audited from the IRS because you were forced to report the $600, and offset it with $500 of expenses for the tickets, do not play the lottery for awhile.

I had an accountant tell me to not worry about this issue at all. We're talking small potatos with the resales.

 

[texascpa]

Technically, use Schedule C to report it, and yes, you can deduct the cost of the tickets (line 4 or 5, I believe). Now, whether the IRS would care if you didn't report it, that's not for me to say.

Edit: Schedule C is for business owners and "independent contractors".