PSL (Personal Seat License) and Season Ticket Cost Basis

[tlaket]

This is really an IRS question but I'm sure there are others here who have the same question. Like thousands of other people, I had to purchase a PSL (Personal Seat License) in order to purchase season tickets for an NFL team. I purchased the PSL four years ago and I purchase season tickets every year. This year I sold some individual game tickets for more than the ticket's face value and I expect to receive a 1099-K form. The thing is, I certainly didn't make a profit selling these tickets when I consider how much I had to pay for the PSL (which is necessary in order to purchase my season tickets). So how do I take the cost of the PSL into account when determining whether or not I actually had a capital gain selling individual game tickets?

[NCperson]

@tlaket - this is my humble opinion and that only.

there are two assets discussed here: 

1) the right to buy tickets

2) the tickets themselves

when you sold some of the tickets, you were only selling asset #2 - you didn't sell any part of asset #1.  Therefore the cost basis of what was sold is solely what you paid for the tickets

You still own 100% of the PSL. 

[Mike9241]

@tlaket Most seat licenses are valid for as long as the team plays in the current venue.  therefore the number of games it is good for is indefinite.  there there can be none of its cost assigned to the tickets you sold.

[user17518954898]

Our seat licenses are actually a 30 year lease so their value depreciates each year. Does this change your response to the original question?

[tlaket]

My PSL agreement says this...

“License Term” means the period of time beginning on the Agreement Date and ending on the
earlier of (i) the thirtieth (30th) anniversary of the first Team Game played at the Stadium and (ii)
the date that the Stadium is no longer used for Team Games, unless this License Agreement is
terminated earlier...

So, can I divide the cost of the PSL by thirty, and include that as part of the cost basis each year?

[NCperson]

@user17518954898 no it doesn't. 

The value of the PSL is determined only when and only if you sell it on the open market. 

Assuming you are not a business.....

if you sell at a loss from the original purchase price, that is a personal loss and not tax-deductible.  If you sell it at a gain from the original purchase price, that gain is taxable income.   If the 30 years goes by and you no long have the right to the PSL, it's a personal loss and not tax-deductible. 

There is nothing to amortize.