1099-K tax entry - from Live Nation Entertainment

[RoofD82]

Hi All,

I received a 1099-K from Live Nation Entertainment for "Payment Card and Third Party Transactions", which was a result of my resale of my season tickets to the Boston Celtics.  This is not for self employment.

Based on my state rules, I'm not required to report the income on my Federal taxes as I didn't meet the gross amount minimum.  However, I meet the minimum for State taxes.

My question is how do I report this specifically for state taxes?  Also, since these were resales of tickets I had already purchased, do I only report on the profit made from the tickets?  Thanks much.

[JohnW222]

All income is taxable on your federal return unless specifically excluded by federal law.  The resale of your season tickets is not among income items that can be excluded, so you’ll not only need to report this information on your state taxes, but your federal income tax return, as well.

Please see the TurboTax Help article “How do I enter a 1099-K in TurboTax Online?” for guidance on entering your 1099-K information.  Once you’ve started entering your information into Schedule C, you’ll also have the opportunity to enter any expenses that you have incurred.

[RoofD82]

Hi @JohnW222 

Thanks for the reply.  I'm confused, based on the feedback I've already received on the minimums for federal vs State on this form.  I also reviewed the document you referred me to and it was all tied to the fact that I must have been self employed, which I clearly wasn't.  Am I filling this out like I'm a ticket broker on the side or something?  Also how do I adjust for the fact that these were tickets I already had purchased before reselling?  Something seems off with this.

[JohnB5677 · Accepted solution]

The 1099-K must be reported, but it can be posted in several different ways.  Based on your description of what happened, you should post it under:

1. INCOME
2. I'll choose what I work on
3. Scroll down to Investment Income
4. Select Stocks, Mutual Funds...
5. Yes you sold investments
6. NO did not get 1099-B
7. You sold Personal Items

Now complete the description and sale & purchase information.

[MissMayhem]

The same thing happened to us for putting our Patriots tickets on the ticket exchange.  We're not a broker, and used the ticket exchange (following the season ticket holder rules!) to sell those tickets.

We got the 1099K unexpectedly AFTER we already filed our tax returns!  So, I now have to figure out how to file an amended return for this.

[MaryK4]

See How do I amend my 2019 TurboTax Online return? - Community for instructions.

@MissMayhem

[jjgray]

Hi. I'm planning to follow this process, but it's not clear which tickets are associated with which income. What did people do to retrace the cost of the season tickets for each month? I went into my ticketmaster account and the gross deposit in a given month doesn't match the 1099-K, so I can't figure out what tickets to match each month.

[MaryK4]

In most cases, you would have basis in the cost you paid for the tickets and then possibly fees associated with the sale by the ticket broker. Most brokers buy the tickets for less than what you paid. so if there is a loss, you cannot claim the loss unless you are in the business of selling sports tickets.  You should be able to contact the ticker seller for a list of sales made on your behalf.

@icesare35

[jjgray]

Hi - You'd think it would be easy like that. The 1099-K from Live Nation has the total gross amount by month. To figure out the basis, I tried to figure out what games were bundled with each monthly total amount in the 1099-K. It is impossible to tell because Ticketmaster only displays the net amount after fees by game. 

Has anyone figured out how to calculate the cost basis for each month?

[ThomasM125]

You just need to make one entry to report the total sale amount as reported on the 1099-K form(s). The cost then would be the total you put out during the year to obtain the tickets.

[RoofD82]

If my tickets sold on Ticketmaster in late December, but I didn’t receive payment for them till January, do I report it on the earlier years return?  Or does it roll into income for the following tax year?

[Vanessa A]

Generally, you should report the income in the year you received it.  However, if the income was sitting in an account for you and you simply did not withdraw it until 2023, but you had full rights to withdraw it in 2022, you would include it on your 2022 income. 

If they simply did not process the payment and pay you until 2023, then you would not report it until you file your 2023 return.