1099-K

[SES3]

I am a season ticket holder for a sports team.  I sell some of these tickets online through Ticketmaster.  This year I received notice that I will get a 1099-K form if I exceed $600 in sales.  My understanding is that this $600 limit is based on the gross amount of the sales and does not consider fees paid to the website for selling tickets.  I have not sold the tickets at a profit, but I will exceed the $600 limit. My question is- how do I account for my original costs and fees paid for selling the tickets when filing my taxes?  Do I have to show this as $600 in profit, when this year it will actually be a loss?  Thank you.

[R-SchuleCPA]

The only way to account for the original cost is to claim ticket sales as self-employment income, which will involve claiming 1099K receipts as income, and deducting cost of purchase as an expense. Otherwise, you can claim sales as miscellaneous income and for simplicity not deduct costs of sale. The below link will provide more information.

Ticket sales

[SES3]

Ok thank you. So just to be clear, if I report them as miscellaneous income, my original purchase price is not considered?  Say I paid $700 and sold them for a loss at $600, it would still be considered $600 income for tax purposes?

thank you for your help.