topic Are losses from resale of tickets deductible? Likewise if tickets were resold through a third-party vendor at a loss is there a requirement to pay tax? in Deductions & credits

Are losses from resale of tickets deductible? Likewise if tickets were resold through a third-party vendor at a loss is there a requirement to pay tax?

dcturnbull — Mon, 23 Feb 2026 12:04:11 GMT

Purchased tickets from one vendor, resold them with another for a net loss. Trying to figure out the tax implication if any. Approximate loss was $2000.

Re: Are losses from resale of tickets deductible? Likewise if tickets were resold through a third...

MinhT1 — Mon, 20 Feb 2023 14:41:40 GMT

If you are not in the business of buying and reselling tickets, then the loss is not tax deductible as it is a loss on the sale of personal property.

Please read this TurboTax Help topic for more information.

If you do this as a business, then the loss is recognized as a business loss and is deductible,

Re: Are losses from resale of tickets deductible? Likewise if tickets were resold through a third-party vendor at a loss is there a requirement to pay tax?

Opus 17 — Mon, 20 Feb 2023 15:32:38 GMT

If buying and selling tickets is your “ongoing trade or business“, and you do it regularly with a profit motive, then you need to report the activity as a business on schedule C. You report your income and your expenses, and you pay income tax plus self-employment tax on the net profit. Tickets for which you paid more than you sell them would create a business loss. (If you are operating as a business, you must report your taxes that way, even if you have not registered your business with your state. However, if you are required to register your business, and you have not done so, there may be legal consequences in your state.)

If you are not operating as an ongoing trade or business, then your activities are treated as a hobby. Your profits, (when you sell tickets for more than you paid) are taxable income, but your losses are not deductible. But you only pay income tax on the profits, not the additional 15% self-employment tax.