As indicated previously, it does appear you are doing this for profit. Review the rest of the details about hobby and business so you have all the information necessary.
If you believe you are selling personal use items and not engaged in this for a profit or livelihood you must have the recorded details of your sales. In this situation you can report only the tickets where you had a gain. Personal use items sold at a loss are not reported on your tax return and cannot reduce other taxable income.
To enter your sale in TurboTax, follow these steps. Click this link for more information. Where do I enter Investment Sales?
- Open or continue your return.
- Navigate to the investment sales section:
- TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
- TurboTax Desktop: Search for investment sales and then select the Jump to link.
- Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
- Answer Yes to the question Did you sell any of these investments in 2024? (or Okay! to Time to kickoff your investments!).
- If you land on the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments.
Here is the IRS definition of a hobby or a business. This IRS link will help you: Business or Hobby?
Key elements:
- A hobby requires you to report the income you received. Under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
- A business allows you to deduct the costs necessary to obtain the income. The law explains that 'you must be engaged in the activity to produce a profit'. The test under IRS tax law is that you must show a profit three out of every five consecutive years to be considered a business.
Once you decide what type of income this is you can use the links below to see how to report.
A business will require self employment taxes to be paid as well, social security and medicare. TurboTax will walk you through the process.
@Philski
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