Sports Event Ticket Resale

[TA58]

I sold some sports event tickets (one time sale) at a profit via Ticketmaster.  They sent a 1099-K showing the full amount they received from the buyer including fees.  I entered the information from the 1099-K in box 1a and selected the option "This amount in box 1a is too high or includes some personal transactions".  This allows me to enter the difference between the box 1a amount and my actual cost.  When prompted I entered "I sold some items at a loss or a gain" and entered "0" (this was per information I read on the forum).  At the end, during Smart Check, it says to "check this entry" and brings up the "Capital Asset Sales Worksheet".  I spent 3 hours on the phone with TurboTax yesterday trying to resolve this and they could not provide a solution.  Does anyone else have this situation and how have you resolved it?  Thank you.

[DaveF1006]

Instead of entering this as a 1099-K entry, let's enter this as a sale of a capital asset. First, let's delete your 1099-K entry.

1. Go to Tax Tools > Tools > Delete a form. 
2. Delete the 1099-K Worksheet and any related Capital Asset Sales Worksheets that are showing errors. This "cleans" the data.
3. If you are working in the desktop product, go to the forms mode. Look for 1099-K and any capital asset worksheets regarding this entry.  Select one form at a time, and once selected, the form will appear in the right-side of your screen. Select delete form at the bottom of the forms.
4. log out or close your return so the changes can take place.

Now to enter as a capital asset.

1. Go to Federal > Wages & Income > Investment Income. 
2. Select Stocks, Mutual Funds, Bonds, Other.
3. When asked what type of investment, select Other or Everything Else.
4. Description: "Event Tickets (1099-K)"
5. Sales Proceeds: Enter the Gross Amount from your 1099-K (Box 1a).
6. Cost Basis: Enter your Actual Cost (what you paid for the tickets plus any Ticketmaster fees you paid when buying them).
7. Date Acquired/Sold: There will be a section that asks when you bought the tickets and when you sold them.

[TA58]

I appreciate your reply.  Thank you.  When I go to the Investment, Everything Else section it references 1099-B and not 1099-K.  When prompted for financial institution I entered "Event Tickets-1099-K" along with the box 1a Proceeds amount, cost, and fees.  The software calculates the correct amount of the taxable gain and creates a Schedule D, Cap Asset Sales Worksheet, and Form 8949.  None of these reference the 1099-K or Live Nation/Ticketmaster.  I'm concerned that the IRS will not see the connection and could flag the return for unreported income as they will not see a clear cross reference.   Perhaps someone has already filed and has a similar situation and can advise if the IRS has had any issues?  Thanks in advance.

[DianeW777]

The instructions are accurate from our Tax Expert @DavidF1006. The IRS may look for the 1099-K, however you have reported the income and cost as appropriate for the tax return accuracy. The most important action is to file a correct tax return and many situations, due to the nature of the tax law and filing requirements for payers will cause a change in the entry actions. 

The process of actually entering a 1099-K, or other tax income forms, is for the taxpayer and not the IRS. The IRS already has a copy of your income.

Keep the 1099-K in your tax files and have it available should the IRS request any information later. 

@TA58