topic Basketball Tickets and Sports Cards in Self employed

Basketball Tickets and Sports Cards

joshalee — Tue, 10 Mar 2026 05:44:59 GMT

Hello,

I resell some of my professional basketball tickets I own and already have the 1099K details. Additionally I sell online collectible cards. For each, am I reporting on the net sales or income?

Example: Cost of the tickets for a game are $200 a seat and I sell for $400 a seat. Gross sales were $800, but income was $400. What am I being taxed on?

Re: Basketball Tickets and Sports Cards

Laura_CPA — Wed, 31 Aug 2022 17:49:58 GMT

Dear Joshalee,

Hope you are having a good day 🙂! The 1099K reports gross income only, you'll report that income and any related expenses under a Schedule C (if you are in it with the intent to make a profit). To use your example, you'd report $400 as gross receipt and the cost of the ticket of $200 as an expense, net profit of $200 (will be subject to self-employment tax).

However, if you are not in it to make a profit, then this would be considered a hobby. You'd report your 1099K income on Schedule I, Line 8 of your 1040 tax return (the income will not be subject to self-employment tax). Unfortunately, under the new Tax Reform, you cannot deduct any expenses.

Hope this helps you! Please let us know if you need any further information.

Re: Basketball Tickets and Sports Cards

John-H2021 — Wed, 31 Aug 2022 17:53:04 GMT

Hello Joshalee,

There are 2 ways to report the income.

1. If it is a hobby then the income is reported on schedule 1 for the full amount of the 1099 no expenses allowed to be taken

2. If it is a business the it would be reported on a schedule C (self employed income). Yu would report the 1099 as income and then deduct the expenses you have againist making that income.

Here are a few helpful links

https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a-hobby/L5NClTTtK

https://turbotax.intuit.com/tax-tips/self-employment-taxes/4-tax-tips-for-money-making-hobbies/L89qz1GNj

https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed/L2HLojrj5

Re: Basketball Tickets and Sports Cards

Jefflatta — Wed, 31 Aug 2022 17:58:05 GMT

I'm in a similar situation with reselling some of the football tickets that are part of my season ticket package for games I can't go to.

- What is the distinction that determines whether it is a hobby or a business? Do they just take my word for it, or is there an income threshold or something concrete I can reference?

- To clarify - if it's a hobby and not a business, does that mean I don't get taxed on the money from reselling the tickets at all?

Re: Basketball Tickets and Sports Cards

John-H2021 — Wed, 31 Aug 2022 18:10:54 GMT

For it to be considered a business the IRS looks for the following

The IRS expects that if you start a business, you intend to make money at it. If you don't, your business might be a hobby. To determine if your business is a hobby, the IRS looks at numerous factors, including the following:

Do you put in the necessary time and effort to turn a profit?
Have you made a profit in this activity in the past, or can you expect to make one in the future?
Do you have the necessary knowledge to succeed in this field?
Do you depend on income from this activity?
Are your losses beyond your control?

These are just some considerations that may, or may not, apply in determining if you have a business or a hobby in the eyes of the IRS.

If it is a hobby then you need to report the total income as other income on schedule 1 with no expenses allowed

Beginning in 2018, the IRS doesn't allow you to deduct hobby expenses from hobby income. you must claim all hobby income and are not permitted to reduce that income by any expenses.

Re: Basketball Tickets and Sports Cards

Jefflatta — Wed, 31 Aug 2022 18:17:03 GMT

Thanks, John. But now I'm confused again - it sounds like it being a hobby is worse for me (in terms of taxes to pay) than if I called it a business, because if it's a business at least I can deduct the cost I paid for the tickets as a business expense. But if it's a hobby, I have to pay taxes on the entire amount I received as payment even though I had to pay most of that already to buy the ticket I resold?

Put another way - are you saying that if I (to use the original poster's example) buy a ticket for 200 dollars and sell it for 400 dollars:

- If this is considered a hobby I'm taxed on 400 dollars

- If this is a business I'm taxed on 200 dollars

So wouldn't I want to call it a business?

Re: Basketball Tickets and Sports Cards

John-H2021 — Wed, 31 Aug 2022 18:22:25 GMT

If you call it a hobby the $400 will be taxed at your normal take rate, If you call it a business the profit will be taxed at your normal tax rate plus and additional 15% self employment tax.

Example if you are in the 10% bracket taxes would be

Hobby $400x10%=$40

Business $200x10%=$20 plus $200x15%=$30 total tax $50

Re: Basketball Tickets and Sports Cards

Jefflatta — Wed, 31 Aug 2022 18:39:38 GMT

Thanks, John, that definitely makes sense! Just one last question - if I am to call it a business, do I need to incorporate or do any paperwork to "be" a business? Or is it just going through the questions you listed and self-identifying as self-employed on my taxes next year?

Re: Basketball Tickets and Sports Cards

John-H2021 — Wed, 31 Aug 2022 18:49:07 GMT

No paperwork needed just report the business on the self employed section of the tax return

Re: Basketball Tickets and Sports Cards

joshalee — Wed, 31 Aug 2022 19:08:17 GMT

Thanks for the responses.

So in the case of selling tickets and this is my "hobby". If I sold $7500 worth of NBA games I didn't go to, but my cost is $5000, I'm going to report the $7500 vs $2500 profit made because I'm not a business?

So if my tax is 30% it's $2250 is planned taxes vs $750.

Re: Basketball Tickets and Sports Cards

joshalee — Wed, 31 Aug 2022 19:10:05 GMT

Wait this is if I wasn't intending to sell these for profit. I am because I'm not getting rid of the tickets like to friends, I'm trying to sell at a demand price. So then I report on the profit only.

Josh

Re: Basketball Tickets and Sports Cards

Laura_CPA — Wed, 31 Aug 2022 19:13:04 GMT

Yes, you got that right. You would report $7,500 on Schedule I, Line 8 (no expenses allowed). You would be paying ordinary tax rate, depending on your income level.

Re: Basketball Tickets and Sports Cards

Laura_CPA — Wed, 31 Aug 2022 19:14:02 GMT

If intended for profit, then you would be allowed to claim the expenses related to the sale of the tickets, under Schedule C.

Happy to help!

Re: Basketball Tickets and Sports Cards

joshalee — Wed, 31 Aug 2022 19:15:23 GMT

Yes these resales are intended for profit and also my sport trading cards on places like Ebay. For the cards I don't know the cost so if I sold something for $25 I would report the full amount?

Re: Basketball Tickets and Sports Cards

John-H2021 — Wed, 31 Aug 2022 19:18:50 GMT

You can report the full amount but doing some research to find the cost would be benefical and save some taxes

Re: Basketball Tickets and Sports Cards

joshalee — Wed, 31 Aug 2022 19:51:51 GMT

How about losses. Using the tickets again, if the cost is $200 per ticket and I sell these for $100 each through a ticket exchange to get rid of the inventory, it's still going to report the $100 sale to my 1099K. What do I need to do to ensure I'm not getting taxed on this?

Earlier there was a comment about paperwork or not if I sell for profit. What's a best practice for my wife and myself if we are selling things like clothing, tickets, collectibles on the side for a profit. At least have an business DBA even if we don't need to register? (ie. Josh's Collectibles"

Re: Basketball Tickets and Sports Cards

John-H2021 — Wed, 31 Aug 2022 20:11:48 GMT

Any money you make will be reported on the 1099 as they don't know your cost in the item sold. If you report it as a business you report total income and then report total cost (this will take into account the loss). If you do it as a hobby then you pay tax on the $100

You can name the business if you want but there is no need to you can just use your name as the business name. As far as registering it as a business you would need to check the State regulations and requirements

Re: Basketball Tickets and Sports Cards

joshalee — Wed, 31 Aug 2022 20:29:55 GMT

Right so it's looking at overall sales and income. So if for the year I sold $10,000 in tickets and sports cards and after calculating my cost basis I was $11,000 in costs, then it's an overall loss. I think some of people think transactional on this thread because maybe they don't do more than 25 transactions in a given year and some of them would be selling at a loss. So if I am truly after costs losing money then I would not pay any taxes on the $10,000 reported on a 1099K correct?

Re: Basketball Tickets and Sports Cards

John-H2021 — Wed, 31 Aug 2022 20:39:38 GMT

Correct if you are showing a loss when the schedule C is complete then that loss will carry to the 1040 and reduce other income on the return