1099-NEC

Forum|Forum|2 years ago
March 13, 2024
1 reply
18 views

I sold some season basketball tickets to a local corporation last year for $16,800.00 and they sent me a 1099-NEC for that amount. I paid 12,080.00 for the tickets. This leaves me a profit of $4720.00. My questions are these:

Do I answer question about self employment income as YES, and if so, what do I enter as the TYPE of employment?

I did this already and when I got to COSTS or EXPENSES, should I list the ticket costs as INVENTORY, or something else.

I tried inventory already and it ask me questions about "method to value my inventory" Please clarify as to where I should list my cost of tickets and how to describe?

Vanessa A

Level 15

If this is not a business and you just sold the tickets as a one time thing, then you would enter the 1099-NEC and take the following steps to enter the form and your cost basis.

To enter the 1099 NEC as non-self-employment income take the following steps:

Income
1099-Nec under Other Common Income
Enter the information from the 1099-NEC
Continue through to Does one of these uncommon situations apply? Select "this is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby (this is not common)

Next, to back out your cost basis, you will select

Then you will take the following steps to remove the income:

Income
Less Common Income
Miscellaneous Income
Other Reportable Income
Answer Yes to Any Other Taxable Income
Enter the description such as 1099-NEC received for sale of tickets
Enter the amount on the amount you paid for the tickets as a negative number.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

doorway18Author

Level 2

Thanks,

But I'm not sure what I do when you said, Next, to back out your cost basis, you will select ?

and then you go to next steps. Did you leave something off?

DawnC

Level 15

You enter the amount of the 1099-NEC, which put the full amount ($16800) of the income on your return. Then to remove the actual costs of the tickets (so you don't pay tax on the full amount) do a separate entry to miscellaneous income.

Less Common Income (last section)
Miscellaneous Income (last section)
Other Reportable Income (last section)
Answer Yes to Any Other Taxable Income
Enter the description
Enter the amount on the amount you paid for the tickets as a negative number. (-12,080)

When you enter the 1099-NEC, there is a box to mark that says this is not self-employment income. Mark that so a Schedule C is not generated.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"