If you’re self-employed or work as an independent contractor, you typically report your income, including that from forms 1099-K, on Schedule C of your Form 1040, individual income tax return. If your business is organized as a pass-through entity like a multi-member LLC, LLC electing to be treated as a corporation, S Corp or Partnership, you’ll need to report this information on your Form 1120, 1120S or 1065.
You'll report the total income received as shown on the 1099-K. Then you need to find the cost of the individual games that you sold. If each ticket had a face value then that's easy. If not then you just divide the total cost by the number of games in order to find the cost per game. You deduct what you paid for the tickets that you sold from the income that you made and then you will pay taxes on whatever profit you made.
@Danny1329
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