Civil Bear said:
KoreAmBear said:
CalVC2 said:
StubHub says they will issue 1099-Ks to the IRS for anyone who sells more than $600 in gross sales from tickets. I rarely do, but rec'd an email from SH asking me to upload my TID#, so looked into it.
Also fun that they calculate the amount reported from gross sales and don't care what you paid for the tickets. Note that they will use the date you were paid as the record (so if you sold tickets in December 2021 but haven't yet been paid since game hasn't been played yet, you will still be accountable in 2022).
StubHub note on new tax ruling for 2022
Yikes flipping tickets not so lucrative. Not giving you cost basis is highway robbery.
I'm guessing StubHub is leaving that to the seller to work out with the IRS since they don't know what the seller actually paid for them. I would hope they at least deduct the fees paid to StubHub!
Correct, it isn't StubHub's right to give anybody a cost basis or to deduct any costs from income. The fees paid to StubHub, the cost of the tickets, those need to be put in by the individual taxpayer in preparing taxes. Nobody should end up paying taxes on the money they lost on tickets they would otherwise end up eating.
The big questions are for the IRS, or as StubHub says,, "your tax advisor." But how many ordinary season ticket holders for a college or pro sports team who don't otherwise need tax advisors want to figure out the complexities of the Internal Revenue Code and Regulations, or the complexities of tax forms? Even if you have a tax advisor, how much in cost will it add for the tax advisor to figure things out?
What if I buy $8000.00 worth of season tickets, I use $4000,00 worth for myself, for higher quality games I sell $1,000 worth for $2,000 on StubHub, for medium quality games I sell $2,000 worth for $1,000 worth on StubHub, and I simply eat another $1000 worth of crappy games. Do I have to prove which games I went to or gave to family members or friends and which I ate? Do I not get a loss on the crappy games I ate? I assume that at least I can combine the games I sold for a profit with the games I sold for a loss, so in the above example, I break even and have no income to declare, but I don't know.
What about tickets I use myself, should I have income when, by game time, the tickets I used were worth 5 times what I bought them for? Should I have a loss when, by game time, the tickets I used were worth 20% of what I bought them for? I presume the IRS ignores those issues, but if I pay taxes on the net income from all tickets I sold on SH, combining those sold at a profit and those at a loss, then I might decide to sell more games at a loss to reduce my taxable gain rather than either eat them or use them myself.
Ugh. It definitely makes one think twice, or thrice, or ten times about selling tickets on SH if the total for the year is going to be over $600.
