Properly accounting for COGs for personal ticket resales

Forum|Forum|1 year ago
March 21, 2025
4 replies
42 views

My wife & I purchase season tickets for sporting events. We go to a few games. We sell most of the tickets. We make a modest profit. This year for the first time we've received a 1099-K from PayPal.

Assume the cost of tickets is $10,000 and we sell them for $12,000. We enter $12,000 when filling in the information for the 1099-K.

But I can't figure out where to enter the $10,000 cost.

I think it should end up on line 4 (Cost of Goods Sold) on a Schedule C. And Line 4 comes from the sum of Part III (lines 33-41) of Schedule C. I think this should show up on Line 36 "Purchases less cost of items withdrawn for personal use." But I can't figure out to map from that line to TT's questions. TT gives a range of options for Business Expense but none are clear match for line 36.

Where should I enter the amount we paid for the tickets such that the costs shows up on Line 36?

Thanks
Mike

CatinaT1

Level 15

The cost of your tickets would be an expense, not a Cost of Goods Sold.

You can add the ticket expense as a Miscellaneous Expense. It's under Less Common expenses.

You will then be able to put Ticket Cost as the expense with the amount.

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mjs9876543210Author

Level 2

Hi. Thanks for your help, That's what I've done.

However I would like the amount to show up on line 36 because these are personal items, some of which have been withdrawn for personal use.

So I'd like to know where I can enter the cost so that it will appear on line 36 on Schedule C.

Thanks,

Mike

AnnetteB6

Level 15

If you specifically want to report the items withdrawn for personal use, then you will have to enter inventory information. As you go through that section, there is an entry for items withdrawn for personal use.

Your starting and ending inventory would presumably be zero. Then add the purchases made and the amount withdrawn for personal use.

The same thing could be done by adding a second miscellaneous expense item to account for tickets withdrawn for personal use. It just will not show on line 36.

@mjs9876543210

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