How to correctly enter Ticketmaster ticket profits into Form 8949?

[Lynn G1]

Hello all. I hope someone can help me .  I sold a few NFL tickets for a profit this past year.  Now I have a 1099-K from Live Nation Worldwide, Inc. It provides the "Gross amount of payment" which is significantly higher that my profit on the tickets.  I am unsure how to enter the ticket sale value, my cost and the 10% cut taken by Ticketmaster. on the internet folks suggest using Form 8949 which then apparently feeds into  Schedule D or just to use Schedule C.  I tried goin to Form 8949 but it has already been completed when I imported stock info from Fidelity and it doesn't look like I can add a new form or new lines to the existing form.  I am scratching my head over this.  Can anyone help?  Thanks a mil!

[MindyB]

Yes. ‌It sounds like you sold a few tickets that were personal in nature, not a business. ‌If that is correct, you will not enter this on Schedule C, rather Schedule D.

Here's how to report this in TurboTax Online:

• Within your tax return go to the magnifying glass icon on the top right, type 1099-K and select the Jump to 1099-K link in the search results
• Choose Add a 1099-K
• The next screen will ask "Which type of income your 1099-K is for?" choose Personal item sales, then Continue
• Enter the information from your 1099-K, I used $5,000 as an example, report the number from your 1099-K.
• After you choose continue, the next screen will show "Personal Item Sales". If the tickets were all profitable, choose "Some items were sold at a loss or had no gain", and enter $0.

Now, TurboTax will automatically create a placeholder in investment income.

• After completing the 1099-K entry, next navigate to Federal > Wages & Income > Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) > Add/Edit
• Select Live Nation Worldwide, Inc.
• Under proceeds, you will enter the proceeds from the 1099-K
• You will enter the total amount paid, which is your cost of the tickets
•  Continue on and you will be asked if you paid "sales expenses that aren't included in the sale proceeds reported on the form", here you can report the 10% fee.

[Lynn G1]

Thank you Mindy!!!!

This information was fantastic!  I think that I am almost there. However, after completing everything that you suggested, Turbo Tax found one error.  I am hoping that you might be able to help me one more time. Below is what the error said:

1. FORM 1099-k reconciliation:  If checked, a copy of Form 1099-k with the payer and payment amount shown below has been linked to this worksheet.  Total sales proceeds reported on the Capital Asset Sales Worksheet(s) much match the amount shown below.

Turbo Tax suggests adding sales on this worksheet with sales proceeds to match the amount report on the Form 1099-K.  But I am confused, as I have no idea where the Live Nation number, the one on the 1099-k, came from as it is much higher than all of my combined sales.  Can you please help me again?  Thanks so VERY much!

[RobertB4444]

The 1099-K amount may include the fees that Ticketmaster charged you as well as the money that you received.  You will have to contact Ticketmaster to get a list of all of the sales that they show you receiving.  This information may also be in your online Ticketmaster account.

@Lynn G1 

[M Sh]

I am using the Turbo Tax Premier, and am able to make the placeholder for the 1099-K.  But I am not able to get to do the second part which is to add the costs of the tickets.  Are the steps different or do you know what I could be doing wrong?  This is the 2nd step that was mentioned that I am having trouble with:

Now, TurboTax will automatically create a placeholder in investment income.

• After completing the 1099-K entry, next navigate to Federal > Wages & Income > Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) > Add/Edit
• Select Live Nation Worldwide, Inc.
• Under proceeds, you will enter the proceeds from the 1099-K
• You will enter the total amount paid, which is your cost of the tickets

[KrisD15]

Yes, those are the correct steps as long as you first 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, choose “I sold some items at a loss or had no gain” 

CONTINUE

Finish the interview and select done on the “Your 1099-K summary” screen

This is where you switch to the other section:

Go back 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 
 

Enter each sale that resulted in a gain 

[SPHood]

You need to compare the 1099 from Ticketmaster to what you received.  The Gross Income reported by Ticketmaster is the sale price (net sent to you PLUS the 10% fee) AND the buyer's fee.  The buyer's fee is not a set amount or percentage.   

Ticketmaster is reporting the net amount, seller's fee AND the buyer's fee.

You can go to 1099k.ticketmaster.com and download your 1099K as well as a list of transactions they deposited in your account for the year.  

When I added the seller's fee into the cost it brought the net revenue down to almost zero.  

[eswilliams12]

SPHood - Maybe this should be obvious, but just want to ask - How did you know what the sellers fee was? did you take the amount of the 1099 K and subtract the proceeds?

Thanks!

[SPHood]

Reported income from the 1099-K less the Sales price (net proceeds plus sellers fees).

Fortunately, the report from ticketmaster breaks down Sale price, seller fees and net proceeds paid for each transaction.

[Barrygbg]

I have read this string 3 times and tried to do this and having some success but not completely.  I have the Home and Business download.  I probably sold tickets to 20 games, is someone suggesting that you need to list out each one with proceeds and cost, similar to what you do for 1099-b stock/bonds???  I just assumed I could bunch these.

One of the things I am having a problem correcting is the expenses incurred.  I put in a placeholder number thinking I could go back and update but can't figure out how to do that!  Tried via forms as well.

And two additional questions:

1- does anyone know what TurboTax does with the amount one types in when it asks how much is incorrectly reported (not ticket sales) as I still seem to see the gross amount and not the gross less what i said should be taken out.

2- separate from TurboTax, anyone have any clue what number TurboTax adds to your MAGI?  I was assuming it would be the profit that gets reported but since I can't enter it yet don't see where it is flowing and really hoping it is not the gross amount!  Thanks for any insight you may have.

[JamesG1]

You are reporting IRS form 1099-K and reporting personal sales.  

If box 1a is $1,000 and I sold some items at a loss or had no gain was $600, $400 will be reported as Proceeds on IRS form 1099-B.

The $600 is reported at the top of Schedule 1 Additional Income and Adjustments to Income.

Are you referring to the Modified Adjusted Gross Income (MAGI) for retirement plan purposes?  There are several MAGI for different purposes.  This TurboTax Help may address your question.

If you were to group your personal sales, there would be as many as four categories:

• Personal item for loss reports $0 gain/loss,
• Personal item gain long-term basis,
• Personal item gain short-term basis, and
• Personal item, no gain or loss.

Here are examples.

                       Selling           Cost

                       Price              Basis

T1                   $500              $1,000        Capital loss on personal item = $0 gain/loss

T2                   $400               $300          LT Capital gain on personal item = $100 gain

T3                   $0                   $0               ST Capital gain on personal item = $100 gain

T4                   $100               $100          No capital gain or loss              = $0 gain/loss

                        $1,000           $1,400

@Barrygbg 

[wildcat7477]

Never asked a question in this forum and I'm hoping this follows the other posts in the same discussion.  Otherwise, I'm afraid it won't make any sense.  I still have the same question posed by Lynn G1 several weeks ago.  Like her/him when doing the final check before filing, I got an error message about Form 1099-K reconciliation, which states:

If checked, a copy of Form 1099-K with the payer and payment amount shown below has been linked to this worksheet.  Total sales proceeds reported on the Capital Asset Sales Worksheet must match the amount shown below.

This question concerns a Ticketmaster (Live Nation Worldwide) 1099-K I received when I sold a few of my unused NFL tickets in 2024.  The gross amount of payment is roughly 30% more than the actual amount received.  I've learned from this forum that the gross amount of payment also includes both the 10% I paid Ticketmaster to sell the tickets and the service fee the buyer of the tickets had to pay to Ticketmaster, neither of which I should be paying tax on.

As RobertB4444 suggested, I did get info from Ticketmaster on the amount of the service fee paid by the buyer.  However, I still do not know how to make the reconciliation the error message is requiring. I don't really understand what needs to be reconciled.  TurboTax populated the worksheet number and I would not have thought I would need to reconcile what they calculated.  

Any help would be greatly appreciated.

[JamesG1]

You are reporting IRS form 1099-K and reporting personal sales.  

Instead of box 1a being $1,000, presume that box 1a is $1,200 with $1,000 being the sales price and $200 being the sales fees charged by Ticketmaster.

If box 1a is $1,200 and I sold some items at a loss or had no gain was $600, $600 will be reported as Proceeds on IRS form 1099-B.

$200 is reported as I paid sales expenses....

The $600 is reported at the top of Schedule 1 Additional Income and Adjustments to Income.

Here are examples.

                       Selling           Cost

                       Price              Basis

T1                   $500              $1,000        Capital loss on personal item = $0 gain/loss

T2                   $400               $300          LT Capital gain on personal item = $100 gain

T3                   $0                   $0               ST Capital gain on personal item = $100 gain

T4                   $100               $100          No capital gain or loss              = $0 gain/loss

                        $1,000           $1,400

Fees                $200

Total                $1,200

@wildcat7477 

[M Sh]

When I bought season tickets, the price for each game is different.  I sold all the tickets for a gain. In TurboTax I choose "Various" for the sale date and included the cost and proceeds received for all sales combined.  However, TurboTax asks to review this entry?  Is there a reason why?  Do I have to estimate the cost of the ticket for each game and enter them separately?  Why is various given as a choice in TurboTax if it asks you to review the entry?

[SusanY1]

Various is allowed for the purchase date, but not the sale date, on this entry screen.  However, if you just enter the date of the last sale it will suffice.  The main purpose of these entries is to determine if your holding period is long or short-term so that the gain is treated properly on the tax return. 

You could also enter each one separately but it's not likely necessary.  Keep your itemized list, though, for at least 3 years on the off chance that the IRS inquires about support for this entry.