Form 1099K for sale of personal nfl game tickets

[Silverado2]

I sold 4 games from our personal nfl season ticket package in 2024.  All were sold at a gain and bought and sold in 2024 (short term).  I have received a 1099K from Live Nation/Ticketmaster.  I've seen other similar questions here about how to navigate TurboTax to report this income via download so that it appears correctly on a1040.   I always enter the information in TurboTax myself, however - not via download.  Our return is very straightforward otherwise.   I am confused about where to begin and then how to navigate to enter the details of each transaction?    I guess a Form 8949 is eventually generated by TurboTax?

I have the information on the individual games sales proceeds paid to me from TicketMaster - but no detailed  information on fees other than by just subtracting what I received from the gross proceeds.  Not sure why the Gross Proceeds are even relevant for income tax purposes?  As others have reported, the 1099K total is about 25-30% higher than the funds I actually received for all 4 games in box 1a.  TicketMaster added a footnote to the detailed transaction information that the reportable gain is the difference between what I actually received from the sales and what I paid for each game.  As I would expect.  And since the tickets were bought and sold in less than 12 months, I would expect the gains to all be short term and reported as taxable income for 2024, and then taxed at the applicable tax rate for our taxable income bracket for the year.  Not taxed at the Capital Gains rate.

It seems to me that either the IRS or TurboTax, or both, are taking something that should be very simple and  straightforward and making it extraordinarily difficult!  It should be no different than reporting individual sales of stock or other investments on Schedule D, imo. 

Sensing my frustration yet? 

Where do I start to enter the transaction information myself to report the gains from these sales??  So that the income to be taxed is just the difference between what I actually received and what I was actually paid, as Ticketmaster correctly stated?  Not the difference between the gross amounts and the tickets costs.  And so the correct forms and information is generated by my TurboTax package?

Any help would be greatly appreciated!  Thank you.

[KrisD15]

Form 1099-K is new and can report so many different types of transactions.  I assume the way it is entered in TurboTax will change, but for now it's a little complicated but do-able if you follow these steps. 

In TurboTax enter the 1099-K under:

• 
  Income
  Other Common Income
  Income from Form 1099-K     START

On the “Did you get a 1099-K?” screen, select “Yes”
On the “Which type of income is your 1099-K for?” screen, select “Personal item sales”     CONTINUE

Enter the 1099-K as it was reported 
CONTINUE
On the next “Personal Item Sales” screen, make the correct selection. 
Choose “I sold some items at a loss or had no gain” if you made a profit on any individual sale

CONTINUE
Finish the interview and select done on the “Your 1099-K summary” screen, this reports the 1099-K but not yet any income since the capital gain needs to be calculated

YOU ARE NOT DONE since you made the first choice that only SOME items sold at a loss, that would mean that at least one item sold at a gain, for a profit. 
Now you need to report the sale, go to 

• 
  Income
  Investment Income
  Stocks, Cryptocurrency, Mutual Funds, Bonds, Other    click UPDATE
  The next screen should show “Personal items sales (1099-K)” 
  Click REVIEW to open 

The next screen has an input screen for the Personal items you sold at a
profit/gain.
Enter one sale at a time.
Report when purchased, when sold, how much you paid to buy it and how much they paid to buy it from you

The next screen asks for selling fees.

The profit is Capital Gain listed on your 1040 line 7
 

[Silverado2]

Thank you, KrisD15. That helps.  Maybe I wasn't clear enough, though.  My fault.  Each of the  4 transactions resulted in a Gain.  There were no loss transactions.

Not sure why I would click on "I sold some items at a loss or had no gain"?

Does that clarification change your instructions?

Thank you again.

[dschill123]

Thank you for asking this question as clearly as you did.  This is the most confusing part of taxes this year.  NFL is easier with limited games but add in Baseball tickets throughout the year.  This HAS to be affecting many people and the information and instructions - anywhere - are abysmal (tho I think I can follow the answer your question finally got and figure something out - its just going to be A LOT of manual input and  backward research to find out the actual dates, original prices, sales prices, etc. )  This is going to be even worse next year when the limit drops down to $600.  You'd think Turbo Tax would have a clear answer upfront.  SMH

[MindyB]

@dschill123 No, it doesn't change the answer, because the options are either all items sold at a loss/no gain or some items sold at a loss/no gain.  You can enter $0 for the question how much was sold at a loss or no/gain; which indicates it was all sold at a profit.

[mjkgolf4]

Hi - Based on my situation, I chose "All items were sold at a loss or had no gain"

Once I finish the interview for this 1099K, am I done or do I still need to enter the income I received?

My NFL 1099K is the BIGGEST pain point in my taxes every year. I wish TTax could guide us through it in a much better way. 

Thanks

[JamesG1]

The posting of IRS form 1099-K for personal item sales is a two-step process.  

• First, you post the IRS form 1099-K amount of box 1a.  
• Second, you post the IRS form 1099-B Proceeds  From Broker and Barter Exchange Transactions to report the sales proceeds and the cost of sales.

Make sure that the amount reported on the IRS form 1099-K box 1a equals the Proceeds reported for the multiple entries of IRS form 1099-B.

In TurboTax Online, to report Personal item sales, follow these directions.

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Click the drop down arrow to the right of Other Common Income.
• Click to the right of Form 1099-K.
• At the screen Did you get a 1099-K?, select Yes.
• At the screen How would you like to upload your 1099-K? click Type it in myself. 
• At the screen Which type of income is your 1099-K for, select the button for Personal item sales.  Click Continue.
• At the screen Let's get the info from your 1099-K, enter the information.  Click Continue.
• At the screen Personal Item Sales, click Continue.
• At the screen Your 1099-K summary, notice that the income relates to ‘Personal Items’.  Click Done.
• At the screen Your income and expenses, scroll down to Investments and Savings (1099-B, 1099-K….).  Click the down arrow.
• To the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B), select Start/Revisit.
• At this screen, you will be asked to Review the Personal item sales (1099-K).  Click Review.
• At the screen Now, enter one sale…., answer questions about the personal item sale.  Click Continue.
• At the screen, Let us know if any of these situations apply to this sale, sales expenses may be recorded.
• Select Add another sale as needed.

The entry will be reported:

• on Schedule D of the Federal 1040 tax return, and 
• on line 7 of the Federal 1040 tax return.

Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.

[mjkgolf4]

My concern is this statement:  "Make sure that the amount reported on the IRS form 1099-K box 1a equals the Proceeds reported for the multiple entries of IRS form 1099-B."

It is well documented by multiple users which have sold NFL tickets, that the 1099K we get from Live Nation does not agree with the Proceeds we receive sold tickets. So the 1099 entries (from the 1099K and for the Proceeds) will not be "equal". The 1099K typically overstates the proceeds by approx 20-30%. 

I have followed the instructions in this discussion and I won't be able to complete my taxes for a few weeks, but i would not be surprised that I get lots of "please review" msgs from TTax when I try to complete my txes.....this has happened for several years.  

[dschill123]

This is exactly what happened to me!.  I followed the onscreen and "expert" instructions and had multiple error and review sessions on the one line associated with either "enter the amount from your 1099K" or "the amount of the proceeds".  The only difference for me was my 3rd party was StubHub.  There was the total amount on line 1 of the 1099K and there was a box for every month with an amount. Some months contained both baseball ticket sales and football ticket sales and subsequently a mix of losses and gains.   I ended up entering every sale (19 of them) with I think 8 ultimately having a true gain.  And while I was able to match the monthly 1099K totals to my actual sales, the amounts that would "calculate" in TT were always off and I'd get the same review error.   I finally just plugged in a number that it was looking for (that didn't match any total I came up with  - e.g., sales, gains, original investment amount, etc.) and it finally moved forward.   I know I'm not a dolt and can navigate a basic Excel tracking tool, but either the IRS or Turbo Tax need to figure this process out better.  Best wishes for those continuing to navigate this challenge.

[gwayo]

I too ended up in the smart check dealing with random errors associated with check boxes for questions the interview did not ask. I am now relinquished to reading the actual irs instructions to figure out what the forms are looking for in the selections. Turbo tax seems to be a litany of partially implemented forms and questions. Not at all what I expected moving over to the higher priced turbo tax from tax cut seeking a form that tax cut said they would not implement. I am now waiting on turbo tax to fully implement that same form.

[JamesG1]

"the 1099K we get from Live Nation does not agree with the Proceeds we receive sold tickets".

If the IRS form 1099-K box 1a overstates the sales price by the amount of a selling fee, the selling fee will be entered on the IRS form 1099-B entry at the screen Let us know if any of these situations apply to this sale.  Select I paid sales expenses that .....

For example, if the ticket sold for $100 and IRS form 1099-K box 1a reports $120, report $120 in box 1a of the IRS form 1099-K.  Report $20 under I paid sales expenses that ....

@gwayo

@mjkgolf4  

@dischill123

[gwayo]

The personal item sales screen gives two options of selling some items at a loss or all items at a loss. I had a gain on some items, so I selected the first option. This brings up a box asking for total proceeds for items sold at a loss or no gain. If you put anything in this box other than the same amount listed in 1a on the 1099-k, it creates an error on the 1099-B worksheet if you line item the transactions which I believe is required for ticket sales. Once smart check runs, it walked me through 26 check boxes to identify the cost basis was not reported to the irs or on a 1099B. I am not sure of the accuracy of my return at this point.

@JamesG1 

[dschill123]

Just hoping that if we get audited (as responsible tax payers trying to honestly report sales with profits), that Turbo Tax steps up to "protect us" for following what their system is forcing us to do.   All of the expert response we get aren't addressing how TT is actually performing and the results we are encountering when we follow the on-screen or suggested instructions.   (I got both state and federal refunds, so they accepted something - SO FAR).  Best of luck with the IRS and your taxes!

[JamesG1]

You may elect to remove the IRS form 1099-K entry.  

Then you would report the IRS form 1099-B entries to report the personal sales.

The IRS may or may not request information about the IRS form 1099-K that was issued.

You would retain a full accounting of the income and costs of the personal sales should a tax authority have a question at a later time.

Personal items sold for less than their cost basis report $0 capital gain on line 7 of the Federal 1040 tax return.

Personal items sold for more than their cost basis report the gain on line 7 of the Federal 1040 tax return.  See this example.

                                              Selling                   Cost

                                              Price                      Basis

Item 1                                   $500                       $2,000                 Capital loss on personal item = $0 loss

Item 2                                   $400                       $300                    Capital gain on personal item = $100 gain

Item 3                                   $100                       $100                    No capital gain or loss

                                              $1,000                   $2,400

In TurboTax Online, to report such a sale of personal items, follow these directions.

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Click on the down arrow to the right of Investments and Savings.
• Click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other.
• Click Add investments.
• At the screen Let's import your tax info, select enter a different way.
• At the screen OK, let's start with one investment type, select Other, Land, Second homes, Personal items.

See IRS Publication 525, page 36 under Sale of personal items.

@gwayo 

@dschill123 

[SS gold]

We are using Turbotax deluxe and have a 1099k which shows the gross amount of concert ticket sales. Where do we enter our cost basis, so we are taxed on the net gain? when we follow the instructions, we get an error - maybe because the 'not reported to IRS' box is checked. Although we did not check that box.

Thank you