1099 tax form questions

PJINFLA · January 4

After using fan2fan quite a bit this past year to upgrade my seats plus selling some sports tickets on TM I'm probably going to be over the $5,000 threshold to get a 1099 tax form. Does anyone know how this works will I be taxed only on the amount over $5000 or the entire amount?

Also will I be able to show that I didn't make any income off the f2f sales to offset that amount?

Additionally are there any other expenses that I can use to offset any of the that possible income?

Thanks in advance!

Weston1283 · January 4

It’s tedious, but if you can make an excel sheet or something similar showing each listing and what you paid vs what you sold for, then you shouldn’t owe anything as no profit was made

KJ228171 · January 4

PJINFLA said:

After using fan2fan quite a bit this past year to upgrade my seats plus selling some sports tickets on TM I'm probably going to be over the $5,000 threshold to get a 1099 tax form. Does anyone know how this works will I be taxed only on the amount over $5000 or the entire amount?

Also will I be able to show that I didn't make any income off the f2f sales to offset that amount?

Additionally are there any other expenses that I can use to offset any of the that possible income?

Thanks in advance!

You are taxed only on the profit. If it's a wash you don't have to pay taxes so if the amount sold is equal to or less than the original cost to you there is no income and no income tax due. If it's more you own taxes only on the difference.

PJINFLA · January 4

Weston1283 said:

It’s tedious, but if you can make an excel sheet or something similar showing each listing and what you paid vs what you sold for, then you shouldn’t owe anything as no profit was made

KJ228171 said:

PJINFLA said:

After using fan2fan quite a bit this past year to upgrade my seats plus selling some sports tickets on TM I'm probably going to be over the $5,000 threshold to get a 1099 tax form. Does anyone know how this works will I be taxed only on the amount over $5000 or the entire amount?

Also will I be able to show that I didn't make any income off the f2f sales to offset that amount?

Additionally are there any other expenses that I can use to offset any of the that possible income?

Thanks in advance!

You are taxed only on the profit. If it's a wash you don't have to pay taxes so if the amount sold is equal to or less than the original cost to you there is no income and no income tax due. If it's more you own taxes only on the difference.

Ok thanks, there was some profit made on the sports tickets so I would only have tax on that part.

Are there any other type of expenses I could use to offset that amount. I'm guessing the 10% fee that TM charges the seller would maybe be one. Anything else?

Also this gets a little confusing but does the $5,000 threshold come into play anywhere? Would I only pay tax on the amount of profit over $5,000 or is that just the amount that triggers the 1099 form.
For example let's say the 1099 shows
$6,000 of payouts from TM would I be taxed on the full $6,000 or just the $1,000 that is over the threshhold?

on2legs · January 4

You would be taxed on the amount that you profited. The $5000 just triggers the reporting to the irs. Technically people who were below the $5000 threshold but made a profit are supposed to self report any profit as income.

PJINFLA · January 4

on2legs said:

You would be taxed on the amount that you profited. The $5000 just triggers the reporting to the irs. Technically people who were below the $5000 threshold but made a profit are supposed to self report any profit as income.

Gotcha thank you!

JD87070 · January 4

But you may still need to file the 1099 and then show proof of not profiting. The IRS would only see that you made all that money from selling, not that it was mostly F2F sales. Would probably be best to ask a tax preparer/accountant to be sure.

KJ228171 · January 4

PJINFLA said:

Weston1283 said:

It’s tedious, but if you can make an excel sheet or something similar showing each listing and what you paid vs what you sold for, then you shouldn’t owe anything as no profit was made

KJ228171 said:

PJINFLA said:

After using fan2fan quite a bit this past year to upgrade my seats plus selling some sports tickets on TM I'm probably going to be over the $5,000 threshold to get a 1099 tax form. Does anyone know how this works will I be taxed only on the amount over $5000 or the entire amount?

Also will I be able to show that I didn't make any income off the f2f sales to offset that amount?

Additionally are there any other expenses that I can use to offset any of the that possible income?

Thanks in advance!

You are taxed only on the profit. If it's a wash you don't have to pay taxes so if the amount sold is equal to or less than the original cost to you there is no income and no income tax due. If it's more you own taxes only on the difference.

Are there any other type of expenses I could use to offset that amount. I'm guessing the 10% fee that TM charges the seller would maybe be one. Anything else?

Also this gets a little confusing but does the $5,000 threshold come into play anywhere? Would I only pay tax on the amount of profit over $5,000 or is that just the amount that triggers the 1099 form.
For example let's say the 1099 shows
$6,000 of payouts from TM would I be taxed on the full $6,000 or just the $1,000 that is over the threshhold?

Not unless you actually had the expenses. Whatever fee TM charges you is fair but that's going to be reflected in the total you get. This is basically hobby income for you not business income. You try to get fancy and do it like a business and there's a scenario were you would have to pay self-employment taxes. Just keep it simple. And as on2legs any profit a person makes technically has to be report even if it's five bucks from mowing a lawn or selling a poster. Eventually the reporting threshold is going down to $600 but that keeps getting pushed out.

pjl44 · January 4

I prefer the Metallica forum for tax advice

PJINFLA · January 4

I would have gone there but they are smart enough not to use f2f.

on2legs · January 4

I’m not a tax professional but I did stay at a holiday inn express last night.

BF25394 · January 4

on2legs said:

You would be taxed on the amount that you profited. The $5000 just triggers the reporting to the irs. Technically people who were below the $5000 threshold but made a profit are supposed to self report any profit as income.

Yes, this is a very important point that many people don't understand about their tax obligations under the law. You are required to report to the IRS any income that you earn regardless of whether the payor issues you Form 1099 or whether the payor reports the payment to the IRS. In this instance, the income is what you net after the resale.

on2legs · January 4

Not to add to the headache of doing taxes but my understanding is that… unless you file a schedule C and report the income as if you were a business there really isn't a way to account for what was a profit on the 1099 and what was the original cost of the tickets. Basically the irs will look at the entire amount on the 1099 as all profit. As far as I know… the only way to explain that some or all of the amount on the 1099 was the original cost of the tickets and therefore not a profit is to fill out schedule C. This will allow you to document your costs and profit if there was any. But you’re essentially declaring yourself a business when you use that form. And that makes doing your taxes way more involved than the average person wants to deal with.

It’s this mess that has led to the delay in implementing the lower reporting threshold of $600. Because ordinary people selling crap from their attic on eBay are unknowingly creating a complicated tax situation for themselves. And the IRS and Congress hasn’t found a way to fairly resolve this mess.

Amantria · January 4

Here you go:

https://turbotax.intuit.com/tax-tips/self-employment-taxes/ticketmaster-1099-k-a-guide-to-1099-k-reporting-for-sellers/c7YmvukTx

Looks like a pain in the ass, but doable. I used to work in the accounting field, like 15 years ago. Still do my own. I didnt read the entire article, but it looks like something you can do on your own if you read through the rules carefully enough.

KJ228171 · January 5

on2legs said:

Not to add to the headache of doing taxes but my understanding is that… unless you file a schedule C and report the income as if you were a business there really isn't a way to account for what was a profit on the 1099 and what was the original cost of the tickets. Basically the irs will look at the entire amount on the 1099 as all profit. As far as I know… the only way to explain that some or all of the amount on the 1099 was the original cost of the tickets and therefore not a profit is to fill out schedule C. This will allow you to document your costs and profit if there was any. But you’re essentially declaring yourself a business when you use that form. And that makes doing your taxes way more involved than the average person wants to deal with.

It’s this mess that has led to the delay in implementing the lower reporting threshold of $600. Because ordinary people selling crap from their attic on eBay are unknowingly creating a complicated tax situation for themselves. And the IRS and Congress hasn’t found a way to fairly resolve this mess.

Since I'm striking out in the quest for ticket I might as well contribute something hear.

https://www.irs.gov/newsroom/form-1099-k-faqs-common-situations

Q4. In a single online transaction on an online marketplace, I sold two sets of four tickets to two separate sporting events for $1,000 (one set for $800 and the second set for $200) and I received a Form 1099-K. I purchased each set of tickets for $250 ($500 total) two months before selling them and had planned to use the tickets for my personal use. How do I report the sales of the event tickets, which I bought for my personal use? (updated Feb. 6, 2024)

A4. You must report the gain and loss on the sale of the two sets of tickets separately because the loss on the sale of the second set of tickets cannot offset the gain on the sale of the first set of tickets.

The $550 gain from the sale of one set of tickets ($800 sales price - $250 purchase price = $550 gain) must be reported as short-term gain on Form 8949 PDF and Schedule D PDF.

The $50 loss from the sale of the other set of tickets ($200 sales price - $250 purchase price = $50 loss) should be reported as follows:

Form 1040, Schedule 1:

Part I – Line 8z, Other Income. List type and amount: “Form 1099-K Personal Item Sold at a Loss…. $200” to show the proceeds from the sale reported on the Form 1099-K

and

Part II – Line 24z, Other Adjustments. List type and amount: “Form 1099-K Personal Item Sold at a Loss…. $200” to show the amount of the purchase price that offsets the reported proceeds.

That's a PITA that you have to list every sale separately to deal with the offsets. Of course that's easier that filing as a business and saves you from paying self employment tax on top of income tax. In the off chance the IRS flags the filing the question would be intent: Are you trying to make a profit or isn't more like hobby income?

on2legs · January 5

That’s good info!

mookeywrench · January 5

KJ228171 said:

on2legs said:

Not to add to the headache of doing taxes but my understanding is that… unless you file a schedule C and report the income as if you were a business there really isn't a way to account for what was a profit on the 1099 and what was the original cost of the tickets. Basically the irs will look at the entire amount on the 1099 as all profit. As far as I know… the only way to explain that some or all of the amount on the 1099 was the original cost of the tickets and therefore not a profit is to fill out schedule C. This will allow you to document your costs and profit if there was any. But you’re essentially declaring yourself a business when you use that form. And that makes doing your taxes way more involved than the average person wants to deal with.

It’s this mess that has led to the delay in implementing the lower reporting threshold of $600. Because ordinary people selling crap from their attic on eBay are unknowingly creating a complicated tax situation for themselves. And the IRS and Congress hasn’t found a way to fairly resolve this mess.

Since I'm striking out in the quest for ticket I might as well contribute something hear.

https://www.irs.gov/newsroom/form-1099-k-faqs-common-situations

Q4. In a single online transaction on an online marketplace, I sold two sets of four tickets to two separate sporting events for $1,000 (one set for $800 and the second set for $200) and I received a Form 1099-K. I purchased each set of tickets for $250 ($500 total) two months before selling them and had planned to use the tickets for my personal use. How do I report the sales of the event tickets, which I bought for my personal use? (updated Feb. 6, 2024)

A4. You must report the gain and loss on the sale of the two sets of tickets separately because the loss on the sale of the second set of tickets cannot offset the gain on the sale of the first set of tickets.

The $550 gain from the sale of one set of tickets ($800 sales price - $250 purchase price = $550 gain) must be reported as short-term gain on Form 8949 PDF and Schedule D PDF.

The $50 loss from the sale of the other set of tickets ($200 sales price - $250 purchase price = $50 loss) should be reported as follows:

Form 1040, Schedule 1:

Part I – Line 8z, Other Income. List type and amount: “Form 1099-K Personal Item Sold at a Loss…. $200” to show the proceeds from the sale reported on the Form 1099-K

and

Part II – Line 24z, Other Adjustments. List type and amount: “Form 1099-K Personal Item Sold at a Loss…. $200” to show the amount of the purchase price that offsets the reported proceeds.

That's a PITA that you have to list every sale separately to deal with the offsets. Of course that's easier that filing as a business and saves you from paying self employment tax on top of income tax. In the off chance the IRS flags the filing the question would be intent: Are you trying to make a profit or isn't more like hobby income?

To emphasize the IRS loss example above: Note that line 24z deduction can only be to the extent of the purchase price as you cannot pick up a net loss for the sale of personal property.

KJ228171 · January 5

mookeywrench said:

KJ228171 said:

on2legs said:

Not to add to the headache of doing taxes but my understanding is that… unless you file a schedule C and report the income as if you were a business there really isn't a way to account for what was a profit on the 1099 and what was the original cost of the tickets. Basically the irs will look at the entire amount on the 1099 as all profit. As far as I know… the only way to explain that some or all of the amount on the 1099 was the original cost of the tickets and therefore not a profit is to fill out schedule C. This will allow you to document your costs and profit if there was any. But you’re essentially declaring yourself a business when you use that form. And that makes doing your taxes way more involved than the average person wants to deal with.

It’s this mess that has led to the delay in implementing the lower reporting threshold of $600. Because ordinary people selling crap from their attic on eBay are unknowingly creating a complicated tax situation for themselves. And the IRS and Congress hasn’t found a way to fairly resolve this mess.

Since I'm striking out in the quest for ticket I might as well contribute something hear.

https://www.irs.gov/newsroom/form-1099-k-faqs-common-situations

Q4. In a single online transaction on an online marketplace, I sold two sets of four tickets to two separate sporting events for $1,000 (one set for $800 and the second set for $200) and I received a Form 1099-K. I purchased each set of tickets for $250 ($500 total) two months before selling them and had planned to use the tickets for my personal use. How do I report the sales of the event tickets, which I bought for my personal use? (updated Feb. 6, 2024)

A4. You must report the gain and loss on the sale of the two sets of tickets separately because the loss on the sale of the second set of tickets cannot offset the gain on the sale of the first set of tickets.

The $550 gain from the sale of one set of tickets ($800 sales price - $250 purchase price = $550 gain) must be reported as short-term gain on Form 8949 PDF and Schedule D PDF.

The $50 loss from the sale of the other set of tickets ($200 sales price - $250 purchase price = $50 loss) should be reported as follows:

Form 1040, Schedule 1:

Part I – Line 8z, Other Income. List type and amount: “Form 1099-K Personal Item Sold at a Loss…. $200” to show the proceeds from the sale reported on the Form 1099-K

and

Part II – Line 24z, Other Adjustments. List type and amount: “Form 1099-K Personal Item Sold at a Loss…. $200” to show the amount of the purchase price that offsets the reported proceeds.

That's a PITA that you have to list every sale separately to deal with the offsets. Of course that's easier that filing as a business and saves you from paying self employment tax on top of income tax. In the off chance the IRS flags the filing the question would be intent: Are you trying to make a profit or isn't more like hobby income?

To emphasize the IRS loss example above: Note that line 24z deduction can only be to the extent of the purchase price as you cannot pick up a net loss for the sale of personal property.

Yup. At best you can zero out any net profit but can't book a loss (without being a business).

Gern Blansten · January 5

Yeah I would just claim the 1099k amount as other income (not sch c unless you are a scalper) and then add another line to offset the 1099k and just call it "1099k for personal sales" "so that it zeroes out.

$5000 ticketmaster 1099k
-$5000 1099k for personal sales
$0 other income.

The IRS will be looking for the $5k so be sure to list it separately

on2legs · January 5

SHZA · January 5

BF25394 said:

on2legs said:

You would be taxed on the amount that you profited. The $5000 just triggers the reporting to the irs. Technically people who were below the $5000 threshold but made a profit are supposed to self report any profit as income.

Yes, this is a very important point that many people don't understand about their tax obligations under the law. You are required to report to the IRS any income that you earn regardless of whether the payor issues you Form 1099 or whether the payor reports the payment to the IRS. In this instance, the income is what you net after the resale.

Actually "income" is the gross and what must be reported. The net is what drives how much you owe.

Good info from the IRS faq. If you're only making a couple sales that seems much simpler. But if you're making more frequent sales and take an L at times you'd want to capture that to offset the profits.

1099 tax form questions

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