I received a 1099-K from SeatGeek. Where and how do I report the loss and income received in TT? These were not sold as a business.

[lizp1]

Hello, I received a 1099-K from SeatGeek for resale of sports tickets for 7 games. These were not sold as a business; we have season tickets and were unable to attend the games. Under 1099-Misc, other Income, I selected Personal Items Sale, filled in the information from the 1099-K. Is this the correct classification? When I went to the next section Interest and Dividends, it said I will need enter/review each personal item sold. Since each game was a separate sale, I am thinking I need to enter each sale/transaction separate. Is that correct? I listed the Amount Paid (Face value of the ticket, cost of membership (needed to purchase tickets) and seatback) Am I able to include that in the total cost I paid out? I listed the proceeds as payment I received. Would the percentage SeatGeek took be considered Sales Expense? Thank you for your help and guidance.

[DavidD66]

Yes, the amount SeatGeek kept is a sales expense and should be used to adjust (reduce) your proceeds.   You should list each sale separately.  Your cost basis for each ticket would include an allocated portion of your membership fee and the cost of the seat back.  There is a section in TurboTax for entering a Form 1099-K.  If you didn't you should start there and enter the information on your Form 1099-K.  

[lizp1]

Thank you David. I am sorry, I have one more follow up question. I entered the ticket sale information, date sold, total amount I paid. Under Proceeds, I am entering the amount I received, this does not include the % SeatGeek took, then I am entering the % they took under the Sales Expense, is that correct? 

Example: ticket sold for 100.00, my statement from SeatGeek has the net pay as $90.00 (that is what I entered under proceeds), SeatGeek %/Sales expense is $10.00 (I entered that under "I paid sales expenses that aren't included in the sales proceeds reported on the form". The 1099-K received has 2-boxes, 1a has the gross, I entered that in the section for 1099-K. Box 1b has the actual amount received (less the % taken).

[ThomasM125]

It sounds like the sales proceeds were $90 after the $10 commission was paid. If so, it is appropriate to enter the proceeds as $90.  But you shouldn't enter $10 as sales expenses that aren't included in the sales proceeds, because they are included if you entered $90 as the proceeds.

[lizp1]

Thank you Thomas, I am sorry, I think I am still a little confused. When I entered the 1099-K information, I entered the total gross of sales listed in Box 1a as TT instructed. This amount was the total sale of the ticket - my portion and SeatGeeks portion.

Under Interest and Dividends, I entered the amounts for each separate game, date sold, what I paid and under proceeds, I entered the amount I received ($90.00), that did not include the % SeatGeek kept ($10.00). Should my amount under proceeds be the amount I received plus the amount SeatGeek took, the total cost of the ticket sale through SeatGeek ($100.00)?

The next screen asks if any of these situations apply: 

"I paid sales expenses that aren't included in the sale proceeds reported on the form" or "None of these apply" Which would I select here? 

Thank you and I do apologize, I am sure I am making this more confusing than it needs to be.

[JamesG1]

The amount reported on IRS form 1099-K box 1a should be the same as IRS form 1099-B Proceeds.

So, if the IRS form 1099-K is reporting $90 in box 1a, IRS form 1099-B Proceeds should be reported as $90.

Since the $10 fee to SeatGeek was netted on IRS form 1099-K box 1a, you would not report the $10 sales expense at I paid sales expenses that aren't included in the sale proceeds reported on the form.

[lizp1]

Thank you James. I just want to be sure I understand this, I think I need to back-up a step on this.
Under 1099-MISC and Other Common Income, I entered the 1099-K information for SeatGeek, I selected Personal Item Sales, entered the amount in Box 1a, this is the total amount the tickets sold for, $100.00 (payment I received plus their fee). Next to Box 1a in TT, it says "Gross amount of payment card/third party network transaction. You can adjust the amount according to your records for this line of work or income."  Under that, there is a box that you can check if the amount in box 1a is too high or includes some personal transactions.
Was I correct to enter the $100.00 (box 1a) or should I have entered the income received $90.00 1099-K Box 1b?
Do I need to check that box - "this amount in Box 1a us too high..."?
Is the fee they took considered a personal transaction?

The amount on the 1099-K box 1a does not match my proceeds since box 1a includes their fee $100.00. On the 1099-K form, box 1b is the payment I received/proceeds $90.00.

Under Interest and Dividends, I entered the details of the transaction. Under Proceeds I entered the payment I received, $90.00.
On the next screen, it says Let us know if any of these situations apply to this sale: "I paid sales expenses that aren't included in the sale proceeds reported on the form. Sales expenses not reported $ " or "None of these apply".
Under the learn more for "I paid sales expenses..." it says: Sales expenses are for any sales expenses you paid that were not already subtracted from the gross sale proceeds to get the amount of sale proceeds. Box 1a is the total gross on the 1099-K form. Would I list the $10.00 under "I paid sales expenses..." or just select "None of these apply"?
thank you for your help and guidance with this.

[JamesG1]

When reporting the IRS form 1099-K, I would post box 1a as the amount reported on the form.  I believe that the amount is $90, the $100 less the $10 fee.  I would not select This amount in box 1a is too high or either option at the screen Personal Item Sales.

When reporting the IRS form 1099-B, I would post the same amount reported above as the Proceeds.  I believe that the amount is $90.

At the screen Let us know if any of these situations apply, you may report an amount under I paid sales expenses.  However, I think the $10 fee has been 'netted' on the IRS form 1099-K box 1a.  If I am understanding correctly, I would not report the $10 there.

@lizp1 

[lizp1]

Thank you James. I think the part I am getting confused at is on the 1099-K Box 1a has $100.00, this is the total amount the ticket sold for. Then Box 1b has $90.00, this is the amount of the proceeds received.  

In TT, I will report the 1099-K at $100.00 as listed in box 1a, under the 1099-B, I will list the proceeds as $90.00. In this case, would I list the $10.00/fee under I paid sales expenses or select "None of these apply"?

I may need to contact the third party to make sure my form is correct since my 1099-K box 1a does not match the proceeds received.

thank you.

[JamesG1]

My understanding is that you sold a ticket for $100 and SeatGeek took a $10 fee.

If SeatGeek IRS form 1099-K reports $100 in box 1a, you would report the $10 fee at I paid sales expense that aren't include in the sales proceeds.

If SeatGeek IRS form 1099-K reports $90 in box 1a, you do not report a fee at I paid sales expense that aren't include in the sales proceeds.

[lizp1]

Thank you James so much, I really appreciate your help with this and clarifying what is needed.