Yes. You need to include Form 1099-K information on your tax return as the IRS will receive this information as well. If you don't report the income, then you will receive a letter from the IRS requiring you to pay tax on the income.
I'm surprised that you received the form as PayPal states the following requirements for issuing Form 1099-Ks on their website:
"PayPal will track the payment volume of your account(s) to check whether your payment volume exceeds both of these levels in a calendar year:
- $20,000 USD in gross payment volume from sales of goods or services in a single calendar year
- 200 payments for goods or services in the same year (except in Vermont and Massachusetts where the threshold is lower irrespective of the number of transactions)"
You can also deduct what you paid for the tickets. The gain or loss from the sale will reflect on your tax return. To do so, you need to complete a Schedule C to account for the purchase (expense) and the sale (income). And you are correct, this will essentially be a wash.
See this TurboTax FAQ for steps on completing Schedule C in TurboTax. Click "See entire answer" for the full page view. https://ttlc.intuit.com/replies/3302122
