Tax reporting sports ticket sales

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bs1027
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Joined: Wed Jan 14, 2015 10:51 am

Tax reporting sports ticket sales

Post by bs1027 » Wed Mar 13, 2019 10:33 am

Hey all I was hoping to see if anyone here has any advice on how ticket sales should be reported on tax returns. I live in MA, bought bruins season tickets, and sold games on StubHub that I couldn't go to and couldn't give to family/friends. StubHub apparently sent out 1099k's to people who live in MA and grossed >= $600 in sales in 2018. Does anyone have any advice on how to report this? I also have the following questions:
  • I should only have to report profit, correct? With profit being defined as the sum of (gross sales price for game - stubhub fees - price I paid) across 2018?
  • In 2018 I only had profits, but so far in 2019 I've had profits and losses. Am I able to subtract the losses (sold for less than what I paid) from profits for 2019 tax reporting?
  • From what I understand this 1099k is only being sent to the MA DOR. Does anyone know if that's correct? Is the IRS getting their hands on these?
As always thanks for the help!

runner3081
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Re: Tax reporting sports ticket sales

Post by runner3081 » Wed Mar 13, 2019 11:21 am

Isn't it all on schedule C?

Report total revenue
Report Expenses

Pay taxes on profit.

There are a few states, Mass and Virginia, I believe that have lower 1099 reporting requirements. For the rest of the country, 20K.

Topic Author
bs1027
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Re: Tax reporting sports ticket sales

Post by bs1027 » Wed Mar 13, 2019 11:40 am

runner3081 wrote:
Wed Mar 13, 2019 11:21 am
Isn't it all on schedule C?

Report total revenue
Report Expenses

Pay taxes on profit.

There are a few states, Mass and Virginia, I believe that have lower 1099 reporting requirements. For the rest of the country, 20K.
That's what I was thinking at first, but then I started digging around and I'm seeing stuff like using schedule D or just reporting as other income.

Ace1
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Re: Tax reporting sports ticket sales

Post by Ace1 » Wed Mar 13, 2019 1:26 pm

bs1027
Schedule C is for use if you are in the busness of buying and reselling the tickets.

You sold a personal asset for a gain, which has a cost/basis and selling expenses.
Report it on schedule D, probably short term.

1099k is an IRS form, so it should have been reported to the IRS.
Ace

Topic Author
bs1027
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Re: Tax reporting sports ticket sales

Post by bs1027 » Wed Mar 13, 2019 2:18 pm

Ace1 wrote:
Wed Mar 13, 2019 1:26 pm
bs1027
Schedule C is for use if you are in the busness of buying and reselling the tickets.

You sold a personal asset for a gain, which has a cost/basis and selling expenses.
Report it on schedule D, probably short term.

1099k is an IRS form, so it should have been reported to the IRS.
Ace

Thanks Ace! My basis would not be my overall season ticket payment, correct? Pretty sure the answer is no but just looking for a sanity check. My basis would be the individual game price times # of games sold.

MrDrinkingWater
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Re: Tax reporting sports ticket sales

Post by MrDrinkingWater » Wed Mar 13, 2019 6:37 pm

https://www.irs.gov/pub/irs-pdf/i1099k.pdf

This IRS document might help you.

Are you doing your taxes by hand, or are you using some tax software product?

Good luck!

Topic Author
bs1027
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Re: Tax reporting sports ticket sales

Post by bs1027 » Thu Mar 14, 2019 8:32 am

MrDrinkingWater wrote:
Wed Mar 13, 2019 6:37 pm
https://www.irs.gov/pub/irs-pdf/i1099k.pdf

This IRS document might help you.

Are you doing your taxes by hand, or are you using some tax software product?

Good luck!
Thanks for the doc link! I'm doing it by hand.

Edit: well technically I suppose I'm doing it on a computer, but I'm using the free fillable forms.

Hockey10
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Re: Tax reporting sports ticket sales

Post by Hockey10 » Thu Mar 14, 2019 11:55 am

Just be happy that you have a profit. There was a recent thread on sports seasons tickets where the majority of experiences were not profitable.

Topic Author
bs1027
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Re: Tax reporting sports ticket sales

Post by bs1027 » Thu Mar 14, 2019 3:55 pm

Hockey10 wrote:
Thu Mar 14, 2019 11:55 am
Just be happy that you have a profit. There was a recent thread on sports seasons tickets where the majority of experiences were not profitable.
Oh overall for 2018 I didn't have a profit, far from it. But I did profit on those individual games that I sold.

Nate79
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Re: Tax reporting sports ticket sales

Post by Nate79 » Thu Mar 14, 2019 4:19 pm

bs1027 wrote:
Thu Mar 14, 2019 3:55 pm
Hockey10 wrote:
Thu Mar 14, 2019 11:55 am
Just be happy that you have a profit. There was a recent thread on sports seasons tickets where the majority of experiences were not profitable.
Oh overall for 2018 I didn't have a profit, far from it. But I did profit on those individual games that I sold.
How did you not make an overall profit if you were selling individual games for a profit?

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Earl Lemongrab
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Re: Tax reporting sports ticket sales

Post by Earl Lemongrab » Thu Mar 14, 2019 4:35 pm

Nate79 wrote:
Thu Mar 14, 2019 4:19 pm
How did you not make an overall profit if you were selling individual games for a profit?
The OP was only asking about the ones that did make a profit. The question I guess is whether anything should be done about the ones with losses. Are tickets capital assets? Most importantly, can gains be offset by losses?
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

Topic Author
bs1027
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Re: Tax reporting sports ticket sales

Post by bs1027 » Fri Mar 15, 2019 5:49 pm

Earl Lemongrab wrote:
Thu Mar 14, 2019 4:35 pm
Nate79 wrote:
Thu Mar 14, 2019 4:19 pm
How did you not make an overall profit if you were selling individual games for a profit?
The OP was only asking about the ones that did make a profit. The question I guess is whether anything should be done about the ones with losses. Are tickets capital assets? Most importantly, can gains be offset by losses?
Yes correct. The reason I didn't make an overall profit is because I paid ~$5500 for 41 games and only sold six-ish on stubhub for a net profit of like ~$300ish. The rest of the games I either went to or gave to family/friends.

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Earl Lemongrab
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Re: Tax reporting sports ticket sales

Post by Earl Lemongrab » Fri Mar 15, 2019 6:02 pm

bs1027 wrote:
Fri Mar 15, 2019 5:49 pm
Yes correct. The reason I didn't make an overall profit is because I paid ~$5500 for 41 games and only sold six-ish on stubhub for a net profit of like ~$300ish. The rest of the games I either went to or gave to family/friends.
Ones that you gave away or used wouldn't be losses.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

Nate79
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Re: Tax reporting sports ticket sales

Post by Nate79 » Fri Mar 15, 2019 8:20 pm

Earl Lemongrab wrote:
Fri Mar 15, 2019 6:02 pm
bs1027 wrote:
Fri Mar 15, 2019 5:49 pm
Yes correct. The reason I didn't make an overall profit is because I paid ~$5500 for 41 games and only sold six-ish on stubhub for a net profit of like ~$300ish. The rest of the games I either went to or gave to family/friends.
Ones that you gave away or used wouldn't be losses.
Yes, this was my suspicion. The OP likely doesnt have a loss but a gain.

Topic Author
bs1027
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Re: Tax reporting sports ticket sales

Post by bs1027 » Sat Mar 16, 2019 2:22 pm

Nate79 wrote:
Fri Mar 15, 2019 8:20 pm
Earl Lemongrab wrote:
Fri Mar 15, 2019 6:02 pm
bs1027 wrote:
Fri Mar 15, 2019 5:49 pm
Yes correct. The reason I didn't make an overall profit is because I paid ~$5500 for 41 games and only sold six-ish on stubhub for a net profit of like ~$300ish. The rest of the games I either went to or gave to family/friends.
Ones that you gave away or used wouldn't be losses.
Yes, this was my suspicion. The OP likely doesnt have a loss but a gain.
Yes I know that the ones I went to/gave away would not count as losses. We were talking about two different things...for tax purposes I have a gain (sold six games for profit), but overall personally I have a loss (didn't make season ticket money back).

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Earl Lemongrab
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Re: Tax reporting sports ticket sales

Post by Earl Lemongrab » Sun Mar 17, 2019 12:58 am

bs1027 wrote:
Sat Mar 16, 2019 2:22 pm
Yes I know that the ones I went to/gave away would not count as losses. We were talking about two different things...for tax purposes I have a gain (sold six games for profit), but overall personally I have a loss (didn't make season ticket money back).
Maybe if you lost money on sales. You can't look at the whole package.

I'm still not sure sports tickets are even capital assets.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

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