1099 tax form questions

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  • JOEJOEJOEJOEJOEJOE Posts: 10,724
    edited February 14
    If the IRS sees that you received a 1099K and didn't report the income, they will send you a notice asking for the tax on the gross.

    What you need to do is report the 1099 income amount as well as the "cost of goods sold".

    This will keep the taxman off your back.

    It doesn't matter if you have a loss on the sales, the IRS will still try to match up the gross income you received on the sales.
    Post edited by JOEJOEJOE on
  • aisleseatsaisleseats Posts: 1,488
    I understand. But since he was claiming I admitted to tax fraud, my point was, I wasn't intentionally defrauding the government out of anything, since there was no gain. Thus, no taxes. And last year, I had already filed my tax return, then received an unexpected 1099 weeks later. I figured, since 1099s are also reported to the IRS, they would contact me if there was any issue. They never did.
    This year, I haven't filed yet, and will include that 1099 on my return. I was joking when I said I wonder if I could just do that again.

    And just FYI to anyone who sold f2f tickets in late December, if you didn't get paid for the sale until after January 1st, those sales will be counted towards next years taxes. 
  • JOEJOEJOEJOEJOEJOE Posts: 10,724
    I understand. But since he was claiming I admitted to tax fraud, my point was, I wasn't intentionally defrauding the government out of anything, since there was no gain. Thus, no taxes. And last year, I had already filed my tax return, then received an unexpected 1099 weeks later. I figured, since 1099s are also reported to the IRS, they would contact me if there was any issue. They never did.
    This year, I haven't filed yet, and will include that 1099 on my return. I was joking when I said I wonder if I could just do that again.

    And just FYI to anyone who sold f2f tickets in late December, if you didn't get paid for the sale until after January 1st, those sales will be counted towards next years taxes. 
    It often takes the IRS a year or 2 to contact taxpayers regarded unreported income.
  • KJ228171KJ228171 Posts: 272
    edited February 15
    I understand. But since he was claiming I admitted to tax fraud, my point was, I wasn't intentionally defrauding the government out of anything, since there was no gain. Thus, no taxes. And last year, I had already filed my tax return, then received an unexpected 1099 weeks later. I figured, since 1099s are also reported to the IRS, they would contact me if there was any issue. They never did.
    This year, I haven't filed yet, and will include that 1099 on my return. I was joking when I said I wonder if I could just do that again.

    And just FYI to anyone who sold f2f tickets in late December, if you didn't get paid for the sale until after January 1st, those sales will be counted towards next years taxes. 
    Yeah but even though what you are saying is logical it’s still technically against the law. The IRS doesn’t care about intentions just the law. Having said that filing an amendment should fix things if they contact you.
    Post edited by KJ228171 on
  • LoujoeLoujoe Posts: 10,339
    BF25394 said:
    Ugh. I thought I had dodged a bullet. Feb 14th, and I hadn’t received any 1099s from anyone. Then of course, the day before the deadline, I get one in the mail this afternoon from Live Nation. 🙄

    I got one last year too. But I had already done my taxes, and the total was below the threshold. So I just ignored it. My return went thru just fine, and I never heard anything from the IRS. Wondering if that same course of action will work this time since it’s also below the threshold. 🤔 
    Whether you receive a 1099 or not, you have a legal obligation to report any income you make. The threshold you reference pertains to the payor's obligation to issue a 1099, not the payee's obligation to report the income. If you fail to report income from resale of a ticket, are you likely to be caught? Almost certainly not. The IRS is extremely underfunded, and it doesn't typically audit the returns of ordinary taxpayers in the absence of a major red flag, but failure to report taxable income is nevertheless illegal. You're essentially admitting to tax fraud in this post.

  • BF25394BF25394 Posts: 4,779
    I understand. But since he was claiming I admitted to tax fraud, my point was, I wasn't intentionally defrauding the government out of anything, since there was no gain. Thus, no taxes. And last year, I had already filed my tax return, then received an unexpected 1099 weeks later. I figured, since 1099s are also reported to the IRS, they would contact me if there was any issue. They never did.
    This year, I haven't filed yet, and will include that 1099 on my return. I was joking when I said I wonder if I could just do that again.

    And just FYI to anyone who sold f2f tickets in late December, if you didn't get paid for the sale until after January 1st, those sales will be counted towards next years taxes. 
    I understood you to be saying that you had sold the ticket for a profit.
    I gather speed from you fucking with me.
  • on2legson2legs Posts: 15,429
    It’s possible the IRS will send you letter regarding the unreported income and let you know you owe the tax and an interest penalty.  They would give you an opportunity to respond back if you think the tax isn’t owed and it’s possible they will accept your response.  Otherwise you will owe them the tax and interest penalty.  As someone else stated, it would probably take a couple of years for them to catch the unreported income so the interest will have accrued during that time. 
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  • Get_RightGet_Right Posts: 13,533
    When you receive money, that is considered income by the IRS. Period. Whether that income can be offset by expenses, or a cost of acquisition, depends on how you file, and how good your accountant is. 
  • CROJAM95CROJAM95 Posts: 10,061
    So livenation sent me for almost $11k, I did lot of upgrading… got burnt on 2 prem sales by accident, thank goodness they sold … my account put on schedule C, costing me like doing a 2nd return… I have medical bills to offset but what a pain in the ass

    i will be wary about this bullshit moving forward, TM the worst 
  • Gern BlanstenGern Blansten Mar-A-Lago Posts: 21,378
    BF25394 said:
    Ugh. I thought I had dodged a bullet. Feb 14th, and I hadn’t received any 1099s from anyone. Then of course, the day before the deadline, I get one in the mail this afternoon from Live Nation. 🙄

    I got one last year too. But I had already done my taxes, and the total was below the threshold. So I just ignored it. My return went thru just fine, and I never heard anything from the IRS. Wondering if that same course of action will work this time since it’s also below the threshold. 🤔 
    Whether you receive a 1099 or not, you have a legal obligation to report any income you make. The threshold you reference pertains to the payor's obligation to issue a 1099, not the payee's obligation to report the income. If you fail to report income from resale of a ticket, are you likely to be caught? Almost certainly not. The IRS is extremely underfunded, and it doesn't typically audit the returns of ordinary taxpayers in the absence of a major red flag, but failure to report taxable income is nevertheless illegal. You're essentially admitting to tax fraud in this post.
    Not really. Since it was all F2F, and there was no income. In fact, I took a loss since they add extra taxes/fees to tickets that had already been sold on F2F. So I’m not failing to report income.
    For example, if I list my Nashville tickets that I got directly thru 10c or TM, I get back exactly what I paid. But if I buy some F2F Nashville tickets, then relist them, I end up losing over $8 per pair. So, there’s no income either way.

    it can take the IRS a year or two to match 1099s to returns so it wouldn't be unusual to be notified this fall for your 2023 return
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  • KJ228171KJ228171 Posts: 272
    CROJAM95 said:
    So livenation sent me for almost $11k, I did lot of upgrading… got burnt on 2 prem sales by accident, thank goodness they sold … my account put on schedule C, costing me like doing a 2nd return… I have medical bills to offset but what a pain in the ass

    i will be wary about this bullshit moving forward, TM the worst 
    Lord knows I’m at the front of the line to drag TM but this is no way on them. You have to direct your ire at about 100 years of Congress and the Presidency. Even the recent lowering of the reporting thresholds didn’t change the actual laws that the tax payer has to report all income.
  • CROJAM95CROJAM95 Posts: 10,061
    KJ228171 said:
    CROJAM95 said:
    So livenation sent me for almost $11k, I did lot of upgrading… got burnt on 2 prem sales by accident, thank goodness they sold … my account put on schedule C, costing me like doing a 2nd return… I have medical bills to offset but what a pain in the ass

    i will be wary about this bullshit moving forward, TM the worst 
    Lord knows I’m at the front of the line to drag TM but this is no way on them. You have to direct your ire at about 100 years of Congress and the Presidency. Even the recent lowering of the reporting thresholds didn’t change the actual laws that the tax payer has to report all income.
    Fuck them, I get your point… but they manipulate the early sales to make you think those or best available, it’s all bullshit… live and you learn but I’m not playing leapfrog game anymore … only direct to GA

    not worth it, my accountant is around 70…. Me trying to explain this to him was hilarious

    i showed vids of ga fun and he was amused 
  • gus stillsgus stills Posts: 368
    Schedule c is not that hard. Not a tax expert at all, but pretty sure you list your “inventory” as your total amount paid for tickets, and then the 1099 amount at your profit. You’ll pay tax on the gain, and no tax on breaking even or loss of money. It’s a lot easier than entering in each sale as a hobby sale. Hope I’m right lol. I sold some sneakers this year and entered it that way on my 1040
  • CROJAM95CROJAM95 Posts: 10,061
    I made zero profit, just upgrades…. Cost me $250 more to schedule c it
  • IlliniGuy76IlliniGuy76 Posts: 646
    edited February 15
    xxx
    or you can come to terms and realize
    you're the only one who can forgive yourself oh yeah...
    makes much more sense to live in the present tense...

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  • KJ228171KJ228171 Posts: 272
    edited February 15
    CROJAM95 said:
    I made zero profit, just upgrades…. Cost me $250 more to schedule c it
    That sucks. You can blame TurboTax, H&R Block and the accountants’ lobbyists for that. They been making the tax code more complicated for decades to insure their business. In America everything is for sale even tax collection.
  • on2legson2legs Posts: 15,429
    edited February 15
    A schedule C is basically fill in the blanks.  
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  • mookeywrenchmookeywrench Posts: 5,963
    Could have also just reported it in and out on schedule 1.
    350x700px-LL-d2f49cb4_vinyl-needle-scu-e1356666258495.jpeg
  • JOEJOEJOEJOEJOEJOE Posts: 10,724
    All the tax nerds are converging!
  • KJ228171KJ228171 Posts: 272
    edited February 16
    JOEJOEJOE said:
    All the tax nerds are converging!
    Come for the music, stay for the seminar on bonus depreciation.
  • mookeywrenchmookeywrench Posts: 5,963
    KJ228171 said:
    JOEJOEJOE said:
    All the tax nerds are converging!
    Come for the music, stay for the seminar on bonus depreciation.
    And waste your life preparing K2 K3 forms that report no foreign activity!
    350x700px-LL-d2f49cb4_vinyl-needle-scu-e1356666258495.jpeg
  • JOEJOEJOEJOEJOEJOE Posts: 10,724
    I was intimidated when I saw how thick the K1s were the first year of the K2/K3s.     
  • aisleseatsaisleseats Posts: 1,488
    I admit, it touched a nerve when referred to as a tax fraud, as nothing was done intentionally. I mean, prior to last year, I'd say that 99% of people who had ever had a a change of plans and had to resell a pair of event tickets to get their money back, didn't report that sale on their taxes. So, if you want to call me a tax fraud, that probably applies to most people in here. But point taken.

    I'm certainly no tax expert. And I'm trying to do it right this year. But they don't make it easy. For example: I had one ticket sale last February. I originally paid $461 for the pair. I sold them to get $460.80 back. So, I actually lost $.20 on that sale. But my 1099k shows $612.23 for that sale (I assume for TM fees, which they never give you an itemized receipt for). Which would indicate that I profited $151.23, even though I didn't. So, do I report that as a personal item sold at a gain, or personal item sold at a loss? And if it's the former, why in the hell am I paying taxes on Ticketmaster's profits? 
  • KJ228171KJ228171 Posts: 272
    I admit, it touched a nerve when referred to as a tax fraud, as nothing was done intentionally. I mean, prior to last year, I'd say that 99% of people who had ever had a a change of plans and had to resell a pair of event tickets to get their money back, didn't report that sale on their taxes. So, if you want to call me a tax fraud, that probably applies to most people in here. But point taken.

    I'm certainly no tax expert. And I'm trying to do it right this year. But they don't make it easy. For example: I had one ticket sale last February. I originally paid $461 for the pair. I sold them to get $460.80 back. So, I actually lost $.20 on that sale. But my 1099k shows $612.23 for that sale (I assume for TM fees, which they never give you an itemized receipt for). Which would indicate that I profited $151.23, even though I didn't. So, do I report that as a personal item sold at a gain, or personal item sold at a loss? And if it's the former, why in the hell am I paying taxes on Ticketmaster's profits? 
    If the1099K doesn't reflect the exact amount that you were paid than that 1099K is wrong and you have to reach out to TM for them to fix it and issue a corrected version. If there are no other ticket sales involved that's a problem. You can always double check the sold tickets in your TM account to reconcile it.
  • pjl44pjl44 Posts: 9,985
    The March newsletter contest should be for a 30 minute consult with an accountant 
  • aisleseatsaisleseats Posts: 1,488
    KJ228171 said:
    I admit, it touched a nerve when referred to as a tax fraud, as nothing was done intentionally. I mean, prior to last year, I'd say that 99% of people who had ever had a a change of plans and had to resell a pair of event tickets to get their money back, didn't report that sale on their taxes. So, if you want to call me a tax fraud, that probably applies to most people in here. But point taken.

    I'm certainly no tax expert. And I'm trying to do it right this year. But they don't make it easy. For example: I had one ticket sale last February. I originally paid $461 for the pair. I sold them to get $460.80 back. So, I actually lost $.20 on that sale. But my 1099k shows $612.23 for that sale (I assume for TM fees, which they never give you an itemized receipt for). Which would indicate that I profited $151.23, even though I didn't. So, do I report that as a personal item sold at a gain, or personal item sold at a loss? And if it's the former, why in the hell am I paying taxes on Ticketmaster's profits? 
    If the1099K doesn't reflect the exact amount that you were paid than that 1099K is wrong and you have to reach out to TM for them to fix it and issue a corrected version. If there are no other ticket sales involved that's a problem. You can always double check the sold tickets in your TM account to reconcile it.
    It's like that for all the months where I had sales that weren't F2F. The only months that are accurate are the ones where I just sold F2F tickets. I just assumed they were lumping their cut into the total, and that's the amount I had to report.
  • jrfiggjrfigg SC Posts: 128
    https://www.irs.gov/businesses/what-to-do-with-form-1099-k#personal

    In case you don’t want an Internet forum to be your accountant. 
  • aisleseatsaisleseats Posts: 1,488
    jrfigg said:
    https://www.irs.gov/businesses/what-to-do-with-form-1099-k#personal

    In case you don’t want an Internet forum to be your accountant. 
    Yeah, I had already looked that over pretty heavily. But it doesn't really give much clarification. And even there, where it tells you what form to use, once you get to the form, it asks you to enter amounts from 1099b, not 1099k. Was just curious to see what others have done, since I can't possibly be the only one here reporting their ticket sales on their taxes.
  • jrfiggjrfigg SC Posts: 128
    jrfigg said:
    https://www.irs.gov/businesses/what-to-do-with-form-1099-k#personal

    In case you don’t want an Internet forum to be your accountant. 
    Yeah, I had already looked that over pretty heavily. But it doesn't really give much clarification. And even there, where it tells you what form to use, once you get to the form, it asks you to enter amounts from 1099b, not 1099k. Was just curious to see what others have done, since I can't possibly be the only one here reporting their ticket sales on their taxes.
    Ha, fair enough. As an accountant I’m probably just more used to reading IRS nonsense. Assuming you need to report on form 8949 and schedule d, on the 8949 part 1 you should report the tickets as short term property with box c (not reported on a 1099b) checked. And then hopefully whatever software you’re using automatically carries that to schedule d part 1 and then on to your 1040 page 1. 
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