Ticketmaster 1099-K reports gross amounts on a monthly basis. Do I enter the gross amount as proceeds, or the net amount I received? Do I allocate expenses per sale?

[grr8scot]

I just finished adding all 43 sales, and yet turbotax says there is an issue with something. The profit is the correct number so I don't know what else to do with it. It says Form 1099-B Worksheet: Amount from Form 1099k has an amount from linked form 1099k but the sales proceeds in this worksheet don't match the payment amount from Form 1099K. Add sales on this worksheet with sales proceeds to match the amount reported on Form 1099k. I don't even recognize the amount it is showing, there is only one amount on the 1099k, I don't know if I need to add in expenses to the amount I received as payment instead of the actual amount and increase the cost basis by the same amount?

[DawnC]

Can you clarify what version (online or desktop) you are using?    And when you entered the 1099-K, what type of income did you select (personal items or other)?   If personal items, did you get a choice to say some or all were at a loss?  If so, what did you select?   I think you may need to change your selection of the type of income, but I want to be sure I know what is going on - I know you don't want to reenter 43 sales!   @grr8scot 

[grr8scot]

I am doing this on my laptop, Yes, I sold as personal items, and yes I answered that I sold some at a loss. I have one gross total from Ticketmaster on the 1099k which includes fees and taxes that I did not pay, it does not separate these out (it even says right on the form this is not the amount you were paid). I entered what I was paid for each sale and what my cost was where there is a loss it just marks as a zero, as I can't take a loss on a personal item. The net profit total is correct but it is saying something doesn't match so I don't know if I somehow have to spread the cost of all additional fees etc across all my sale, increase the amount paid and the cost so that it adds up? The total it is telling me to match with does not even match what is on the 1099k though making it very confusing.

[JamesG1]

Are you able to view IRS form 8949 where the individual entries are located?

In the online versions, you may view or print at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets after you have paid for the software.

In the Desktop versions, one can look at the tax return by clicking FORMS, or by viewing the PDF through the Print Center.

In this example, column (d) Proceeds should equal IRS form 1099-K box 1a.

I think you are saying that your IRS form 1099-K is reporting not gross income but a net income (gross income less Ticketmaster fees charged).  Is that correct?

If so, your column (d) Proceeds will have to balance back to your IRS form 1099-K box 1a.  You may need to allocate the Ticketmaster fees charged across all of the items in order to report an accurate column (d) Proceeds.

@grr8scot 

[grr8scot]

No, Tickemaster is reporting only the gross amount that is related to sales of my tickets. They include seller fees, buyer fees and taxes in that gross total. There is no other data on the 1099k. It states on there that this is not the amount paid to me, the seller. So I don't know if somehow I have to enter those fees in the amount received and cost. If I check the box that says I paid fees not included in what I just reported it deducts it from the profit which then makes the net profit  incorrect.

[DianeW777]

First, you can select 'something other than a date' and use a common and regular date of 'Various'.  You can always use the 'V' for various in the date acquired, however you must know the holding period (one year or less = short term/more than one year = long term).

Sales that can be combined in separate categories when using Various as the purchase date:

1. Include all short term sales sold at a loss 
2. Include all long term sales sold at a loss
3. Include all short term sales sold at a gain
4. Include all long term sales sold at a gain

Use the gross amount shown on the 1099-K, then add the fees (seller fees, buyer fees and taxes) as part of your cost basis.  Do not check the box 'I paid fees not included in what I just reported.' This action will cancel the fees and your result will be only the actual net gain or loss for each category.

@grr8scot 

[grr8scot]

I tried adding the fees to the cost basis but it then reduced the net profit. Can I just spread the fees over the tickets that sold at a loss intead?

[Vanessa A]

No, you cannot claim all the fees to some of the tickets.  You would need to apply the fees to the tickets as they were incurred. The fees must match the income it produced. You are not allowed to "manipulate" fees to "manipulate"  your income. 

[grr8scot]

I am not manipulating the profit, the profit listed is correct. I hv no way of knowing what fees were applied to what tickets, I only know what I, as the seller paid, in fees. Buyer fees and taxes have been included in the gross amount reported by Ticketmaster on the 1099k but I have no idea how much was applied to what tickets and 3 calls to ticketmaster have not helped.

[grr8scot]

I looked at doing this and even if you select various as the purchase date, it says you have to list each sale separately with the actual sell date.

[Vanessa A]

Is this a business or personal selling?

TicketMaster should not be reporting fees and other amounts that you never received.  You may need to use your records to properly report your income and expenses and contact Ticketmaster for a corrected 1099-K.  This would be the best way to handle this.  You should keep the 1099-K for your records along with your return and maybe a written record of you trying to contact them. 

The income reported on your 1099-K should be the fees you paid to Ticketmaster and the money you received.  It should not include fees that you were not charged for.  If the buyer fees go directly to them, this is not part of your income or expenses, so there is no way for you to account for it.  The sales tax is not part of your income either, so this again should not be part of what is reported on your 1099-K. 

The IRS states,

 "If you received a Form 1099-K by mistake or if the form you received has incorrect information, contact the issuer of the Form 1099-K immediately. The issuer’s name appears in the upper left corner on the form along with their phone number.

If you can’t get a corrected Form 1099-K, report as follows:

Same as personal assets sold at a loss except changing the description as follows:

• Part I – Line 8z – Other Income – Form 1099-K Received in Error
• Part II – Line 24z – Other Adjustments - Form 1099-K Received in Error"

You can walk through the same steps you are currently taking to enter this income and fees (not buyers fees and taxes), but then make an adjustment by selecting the following:

• Income
• Show More next to Other Common Income
• Update or Revisit next to Income from Form 1099-K
• Edit next to the 1099-K
• Under Other select Other (can include any taxable income not reported or if the entire amount is not correct)
• Click Box 1a is overstated.  Enter the amount that should not have been reported to you in this box.

This will remove the fees that are not relevant to you. 

[grr8scot]

This is personal selling of my own season tickets. I agree Ticketmaster should have reported the amount they paid to me, then I could subtract the cost and it would have been a very simple exercise. However, they state on their website "the sum in Box 1 is the total of your gross transactional amounts for the previous year - including the price of the tickets you sold plus fees and any other amounts related to your ticket sales, without any adjustments for credits, discounts or refunds. However, the total in Box 1 is not necessarily what you should expect to pay taxes on"

"In order to assist you with figuring out what you need to pay taxes on, for each of your form 1099-Ks, you'll be able to download a file with a list of your transactions showing your payout, the date and transaction ID of each"

"As a note you should only pay taxes on the profit of your sale"

Which is all very well but it is impossible to make anything balance, and I have talked to them at least twice maybe three times, they are not updating the forms, I assume there must be some benefit to them in doing it this way but it is making life very difficult over a few hundred $...

[grr8scot]

Finally, I was able to complete everything and no errors. By doing what you suggested and listing the excess total on the 1099k that was not paid to me as basically an overstatement I was able to list in one lump sum the total payment amount of tickets sold for no gain or s loss, and then just enter the individual sales that made a profit and all the numbers now added up, and the profit amount is correct.

I also called Ticketmaster again, and sent an email to their 1099 k department so that I have a record of the fact that I contacted them and the total does not match what I was paid.

Thank you to everyone who gave me advice I really appreciate it.

[blaprade]

This was a very helpful thread, I had the exact same issues.  Thank you!

[bb1952]

This answer appears to differ from another Turbotax answer (Employee Tax Expert Vanessa A) to a similar question. Yours appears more cautious (which to me is good), but it's confusing to see 2 employees apparently recommending different approaches. She says "Since the tickets were bought for personal use and then sold at a loss this would be similar to yard sale items and not included on your return. You should still hold onto the 1099-K and proof of cost of the tickets since the 1099-K was reported to the IRS."