It’s been a busy summer for concerts and sporting events. Maybe you snagged tickets to watch as Miami’s new hot Argentinian resident makes pink the new color of soccer or see your favorite queen step into a world of renaissance or a different era – but there was someone more eager for those tickets and willing to pay top dollar.
If you made a profit from reselling concert or event tickets, you may be in for a taxing experience! Just like the ticket prices, the taxes associated with reselling tickets can add up quickly. Whether you’re a seasoned scalper or a rookie reseller, it’s important to understand the tax implications of your ticket-flipping transaction.
If you resell a ticket through an online marketplace (think Ticketmaster), you should receive a Form 1099-K if the gross total of your transactions for the year is more than $600. It does not matter how many tickets (or transactions), the gross transactional amount is equal to all your combined sales and fees processed through the platform.
If you’ve sold tickets in the previous years for more than $600 but did not receive a 1099-K, that may be because transactions prior to 2023 were subject to a higher reporting threshold of $20,000 and at least 200 transactions. So, unless you were a seasoned scalper – reselling that frequently – you may not have produced enough volume previously to require a Form 1099-K. However, even if you do not receive a 1099-K, you should still report all your income on your taxes.
While this quick flip may be just a side hustle for you, if you have net earnings of $400 or more, then generally, you will owe self-employment tax. While this may not be your main source of income, in the eyes of the IRS, you are considered self-employed for these earnings.
When it comes time to file your taxes and gather your tax documents, have the details of this sale handy. A 1099-K will likely include your gross total for the sale and may not include any fees you paid. Having receipts for those fees associated with the resell of your ticket will be helpful when filing your taxes.
So, if you’ve resold tickets or are considering reselling, make sure you have a show-stopping financial strategy that hits the right notes and gets you to the goal of reselling your tickets for a profit.
1099-MISC, 1099-NEC, or 1099-K