Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Aug 31, 2022 10:34:17 AM

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 ?

0 1 380
1 Replies
Employee Tax Expert
Aug 31, 2022 2:49:43 PM

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.