Professional Basketball Ticket Resell under cost

If my cost is $200 a ticket and I sell a game under this, it's counting to the $600, but I'm actually taking a loss.

What happens in this situation?

posted

If you're in the business of reselling tickets, first you'll want to report all the income you receive for selling the tickets in the self-employed section of TurboTax, regardless of whether it's reported to you on a 1099-K. Then, in the Inventory section for "Cost of Goods Sold" make sure you report the cost you paid to acquire the tickets. If your total "Cost of Goods Sold" is more than your income, you'll be taking a loss on the business. The rules are different if this is a hobby. The IRS has a helpful page to help you determine whether this is a hobby or a business, and you can check that out here.

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