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?

[Chrisc1071]

1. Multiple sale dates in the month.
2. Took a loss on one sale.
3. No record on Ticketmaster site of sale specific expenses, but I can allocate per gross sale.

[JamesG1]

The IRS form 1099-K gross amount in box 1a should be reported because the IRS will be receiving a copy of the 1099-K.

I would allocate selling expenses across all of the sales and retain a copy of the spreadsheet should you have to report your calculations to a taxing authority at a later time.

Selling expenses will be reported at the screen Let us know if any of these situations apply to this sale when entering the detail to the IRS form 8949. Select I paid sales expenses that aren't included in the sale proceeds reported on the form. 

Personal items sold for less than their basis (most likely, the original purchase price) report $0 capital gain on line 7 of the Federal 1040 tax return.

Personal items sold for more than their basis report the gain on line 7 of the Federal 1040 tax return.  See this example.

                     Selling            Cost

                      Price             Basis

Couch            $500              $2,000        Capital loss on personal item = $0 loss

Jewelry          $400               $300           Capital gain on personal item = $100 gain

Chair              $100               $100           No capital gain or loss

                         $1,000        $2,400

Schedule D will report a $100 long term capital gain.

Federal 1040 tax return line 7 reports $100 long term capital gain. 

To report Personal item sales in TurboTax Online, follow these directions.

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Click Show more to the right of Other Common Income.
• Under Your income and expenses, click the Edit/Add button to the right of Form 1099-K.
• At the screen Did you get a 1099-K? click Yes.
• At the screen How would you like to enter your 1099-K? click Type it in myself.  Click Continue.
• At the screen Choose which type of income your 1099-K is for, select the button for Personal item sales.  Click Continue.
• At the screen Let’s get the info from your 1099-K, enter the information.      Click Continue.
• At the screen Personal Item Sales, you are told that further information will need to be entered.  Learn More provides detailed information for the next steps.  Click Continue.
• At the screen Your 1099-K summary, notice that the income relates to ‘Sale of Personal Items’.  Click Done.
• Under Your income and expenses, click the Edit/Add button to the right of Investments and Savings (1099-B, 1099-K….)
• At this screen, you will be asked to Review the Personal item sales (1099-K).
• At the screen Now, enter one sale…., answer questions about the personal item sale.  Click Continue.

The entry will be reported:

• on Schedule D of the Federal 1040 tax return, and 
• on line 7 of the Federal 1040 tax return.

Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.

Make sure that you retain any information about the items sold should you be required to demonstrate to the IRS that this is not taxable income.                             

[Mrbobwoj]

I don’t see this option in Deluxe version.  I sold some of my NFL season tickets on Ticketmaster and I received a 1099-K for the gross sales price.  I can enter the 1099-k under personal property (as that’s what the TurboTax pop up says to do), but I need to be able to enter the price I paid for them so that I only pay tax on the profit.  Your instructions above are not available to me in Deluxe version, do I need to upgrade or can I update the forms manually?  

[JamesG1]

Sale of personal property items involves use of IRS form 8949 / Schedule D Capital Gains and Losses which is available with TurboTax Premier and above.  This is what you are seeing.

These forms are used to report sales expenses and costs of sales for the sale of personal property.

To report Personal item sales in TurboTax Online, follow these directions.

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Click Show more to the right of Other Common Income.
• Under Your income and expenses, click the Edit/Add button to the right of Form 1099-K.
• At the screen Did you get a 1099-K? click Yes.
• At the screen How would you like to enter your 1099-K? click Type it in myself.  Click Continue.
• At the screen Choose which type of income your 1099-K is for, select the button for Personal item sales.  Click Continue.
• At the screen Let’s get the info from your 1099-K, enter the information.      Click Continue.
• At the screen Personal Item Sales, you are told that further information will need to be entered.  Learn More provides detailed information for the next steps.  Click Continue.
• At the screen Your 1099-K summary, notice that the income relates to ‘Sale of Personal Items’.  Click Done.
• Under Your income and expenses, click the Edit/Add button to the right of Investments and Savings (1099-B, 1099-K….)
• At this screen, you will be asked to Review the Personal item sales (1099-K).
• At the screen Now, enter one sale…., answer questions about the personal item sale.  Click Continue.

The entry will be reported:

• on Schedule D of the Federal 1040 tax return, and 
• on line 7 of the Federal 1040 tax return.

Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.

Make sure that you retain any information about the items sold should you be required to demonstrate to the IRS that this is not taxable income.

@Mrbobwoj    

[kfnesq1970]

I have done all the steps above, and when I get to review my entire filing, I get a "needs review" screen that I cannot get past.  It says, "Loss from sale of personal property is not yet supported in this release of Turbo Tax.  Support for this situation will be provided in a future release."  So, it won't let me file because it doesn't seem to like the total amount of payments and payments for personal property sold at a loss to be the same (I guess).

I have the  same situation as the original poster - I sold tickets at a loss on Ticketmaster and received a 1099-K. So I don't know where to go from here.

[RobertB4444]

The schedule D entry should not care if the tickets that you sold were personal property or not and the tax treatment is the same.  Just non-business property sold for a profit.

Delete whatever entry you have made and enter it as a sale of non-business property without a schedule 1099-B or 1099-K and make sure that the number matches the 1099-K and you're fine.

@kfnesq1970 

[Mrbobwoj]

I had a small profit of roughly $400.  The problem with the 1099-k from TicketMaster is that they do not report your cost basis (the price you paid plus the commission they take) because they do not know.  I was able to enter my cost basis + their commission when I followed the instructions in the original reply (JamesG1) provided.  This translated to the schedule D form 8949.  I used deluxe, not premiere, but I did have to click on "cost basis not reported" on the form when the error popped up, and this triggered me to having to send in my form 8949 after e-filing everything else.  Perhaps the premiere version would've made this a bit easier, I'm not sure.  One thing though, this is a nightmare that millions of people will be experiencing because of this $600 land grab.  Time to go back to cash!

[DawnC]

You should not need to send in the details of your transactions unless you chose to enter them as a summary or by sales section totals.   If you enter the transactions individually (it says something like ''I'll enter one sale at a time'') on Schedule D/Form 8949, you are not required to mail anything after e-filing.   It wasn't what version you used, it was choosing the summary entry instead of the individual entry that caused you to have to mail the forms.   @Mrbobwoj 

Do I need to mail Form 8949?   Keep this in mind in case it comes up again next year.... Don't count on the IRS to simplify anything 😉 

[Mrbobwoj]

I was thinking that was why it forced me to send it in!  I'll be noting this for next year.  Thank you!

[grr8scot]

I have tried this but I don't know what to put as the purchase date? I pay for my season tickets over the course of 12 months?  Also I would have to enter 43 different sales so seemed very confusing. Can it be entered as self-employment income instead?

[ErnieS0]

You do not need to enter a purchase date, or 43 sales if you are following Tax Expert @JamesG1’s instructions. TurboTax will only ask you to enter your Form 1099-K and the total proceeds for items sold at a loss or no gain.

If All items were sold at a loss or had no gain, you don’t have to enter any cost. TurboTax will zero out your Form 1009-K.

To report Personal item sales in TurboTax Online, follow these directions.

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Click Show more to the right of Other Common Income.
• Under Your income and expenses, click the Edit/Add button to the right of Form 1099-K.
• At the screen Did you get a 1099-K? click Yes.
• At the screen How would you like to enter your 1099-K? click Type it in myself.  Click Continue.
• At the screen Choose which type of income your 1099-K is for, select the button for Personal item sales.  Click Continue.
• At the screen Let’s get the info from your 1099-K, enter the information.      Click Continue.
• At the screen Personal Item Sales, you are told that further information will need to be entered.  Learn More provides detailed information for the next steps.  Click Continue.
• At the screen Your 1099-K summary, notice that the income relates to ‘Sale of Personal Items’.  Click Done.
• Under Your income and expenses, click the Edit/Add button to the right of Investments and Savings (1099-B, 1099-K….)
• At this screen, you will be asked to Review the Personal item sales (1099-K).
• At the screen Now, enter one sale…., answer questions about the personal item sale.  Click Continue.

@grr8scot 

[grr8scot]

Some tickets were sold at a loss or no gain, others (18 games) were sold at a profit. After I have entered everything per JamesG1 instructions when I go back to revisit...

• At the screen Now, enter one sale…., answer questions about the personal item sale.  Click Continue. 

I have to enter how I received investment, the description, when did I receive the investment, it asks for a date, or "something other than a date" then date sold, proceeds, total amount paid. It looks to me like i would have to do this 18 times for each pair of tickets sold?

[JamesG1]

You would report the 18 lines similar to the way that the three lines of information are reported below on IRS form 8949.

Personal items sold for less than their basis (most likely, the original purchase price) report $0 capital gain on line 7 of the Federal 1040 tax return.

Personal items sold for more than their basis report the gain on line 7 of the Federal 1040 tax return.  See this example.

                             Selling           Cost

                               Price            Basis

Couch                   $500               $2,000        Capital loss on personal item = $0 loss

Jewelry                 $400               $300           Capital gain on personal item = $100 gain

Chair                     $100               $100           No capital gain or loss

                              $1,000            $2,400

@grr8scot 

[grr8scot]

The other issue I have is it asks for the purchase date...these are season tickets that auto renew, so I don't know when the actual purchase date is? It wants to know whether to charge me short or long term capital gains. I will have to do this 43 times, 18 at a profit, 3 break even and 22 at a loss.

[GeorgeM777]

Based on what you have previously stated, it would seem reasonable to use the date you had control over the tickets as your purchase date.  You mentioned in a prior post that you pay for the tickets over a period of time; however, your control over the tickets is what matters here.  While you pay for them over time, if on a given date you have the ability to sell a ticket(s), transfer a ticket(s), or otherwise give the ticket(s) away for a fee or no fee, then it seems reasonable to use that date as your purchase date.

In your situation, if at the beginning of the season, you had control over all the tickets as expressed herein, then you can use that date as your purchase date, even though you had not fully paid for all of your tickets.  

Your situation is similar to an investor that buys a stock on margin (which is the brokerage industry's term for a loan).  The investor still owns the stock, even though full payment has not been made.  The investor can still sell the stock; however, the investor still has to make full payment.  

@grr8scot