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Lakerfandon
New Member

1099-k . I buy season tickets @ $15000.00 and use 5,000.00 and resell 10,000.00. . will I pay tax on 10,000.00 income reported from ticketmater ?

 
1 Reply
Laura_CPA
Employee Tax Expert

1099-k . I buy season tickets @ $15000.00 and use 5,000.00 and resell 10,000.00. . will I pay tax on 10,000.00 income reported from ticketmater ?

Hi  Lakerfandon,

 

If you are doing this as a hobby, you'll report the amount on the 1099-K on Schedule I, Line 8 and no expenses are allowed. The income is not subject to self-employment tax. You'll pay ordinary tax rate depending on your income tax bracket, your tax return, will show income of $10,000 (if that's the only ticket you sold). 

 

However, if you are in it for profit, this would be a business. In that case, you would report both income and expenses on Schedule C. You'd pay self-employment tax on the net profit, if any. 

 

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