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Level 2
posted Mar 13, 2024 9:28:13 AM

1099-NEC

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? 

0 3 1455
3 Replies
Employee Tax Expert
Mar 13, 2024 9:36:05 AM

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:

  1. Income
  2. 1099-Nec under Other Common Income
  3. Enter the information from the 1099-NEC
  4. 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:

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

Level 2
Mar 13, 2024 9:44:42 AM

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? 

Employee Tax Expert
Mar 13, 2024 10:03:41 AM

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.