How to correctly enter Ticketmaster ticket profits into Form 8949?

[wildcat7477]

Thanks JamesG1, I understand better and corrected some erroneous entries.   Unfortunately, I still get an error message when I run the federal review.  The error message says:

"Form 1099-B Worksheet (Live Nation Worldwide, Inc.): Amount from Form 1099-K has an amount from linked Form(s) 1099-K, but the sales proceeds on this worksheet don't match the payment amount from Form 1099-K.  Add sale(s) on this worksheet with sales proceeds to match the amount reported on Form 1099-K."

I don't quite understand what Turbo Tax is telling me to do; what two numbers should match?

I've looked at the entries in Form 8949 for Live Nation, the Capital Asset Sales Worksheet for Live Nation, Part I of Schedule D which has the info for Live Nation and the Form 1099-B Worksheet relating to Live Nation and all the entries appear to be consistent.  I do not know where to go from here and would greatly appreciate any help you can give.

[JamesG1]

Sorry that I was unclear.

At the screen Review this sale (1099-B) Proceeds amount should equal the amount from the screen Let's get the info from your 1099-K Box 1a.

Perhaps you reported an amount at the screen Personal Item Sales I sold some items at a loss.

If this is the case, the amount reported under Proceeds would equal Box 1a less the amount of I sold some items at a loss.

Hope this helps.

@wildcat7477 

[JCKJCKJCK]

Are you also adding the Buyer's Fee that Ticketmaster included in the 1099-K to your cost?  I've been unclear if the Buyer's Fee and the Seller's Fee should be included as an increase in the cost of the tickets or as an Adjustment in columns F and G on Form 8949.

[DianeW777]

Yes. Record the Buyers Fee and Sellers Fee you are being charged as part of your cost basis on the sale.  It's not necessary to make those as adjustments.

Be sure to keep good records of all your transactions so you are always prepared to support your numbers.

@JCKJCKJCK 

[RTW111]

Sorry, where are you seeing the seller and buyer fees and breakdown in the Ticketmaster report? In the transaction report I downloaded it was just showing me the money the "seller payout" I received. I'm having a hard time calculating the extra costs added by Ticketmaster. In my 1099-k all it's giving me is a lump sum of gross income for the month of November (I made 6 ticket sales in that month) and once i've subtracted my total payout for that month I'm left with amount of the extra fees. 

However, based on this thread, my understanding is that I only need to add the sales that I gained on and out of the 6 sales I made that month I only profited on 2 of those so I'm trying to enter them individually - however, I only know the amount of seller payout for each sale and have no idea how much extra fees TM is attributing for those 2 sales....

@SPHood

[PatriciaV]

You may be able to allocate the Ticketmaster fees based on the selling price of the tickets.

Example:

• Total proceeds: $1000
• TM Fees: $100
• Tickets sold at a gain: $200
• Percentage of tickets sold at a gain: 200/1000 = 20%
• Fees for sales with a gain: 20% x $100 = $20.

@RTW111 

[Simpleton]

Also, in your third screenshot, why does TurboTax require the "Total amount paid"  should be clarified to be cost basis.

[Simpleton]

For me, this error results from the confusing TurboTax process of entering the 1099-K for ticket sales under "Other Common Income - 1099-MISC, 1099-K, 1099-G, tax refunds," then getting an error message to send you back to "Investment Income - 1099-B or broker statements" and then entering the cost basis information.

As a result of this confusing process, in the second step of entering my 1099-K, TT asked for "Enter the total proceeds for items sold at a loss or no gain." Since I had entered gross proceed without entering cost basis, I entered my gain here. Otherwise, there was no reflection of cost basis (at that point). That created my issue.

Even after I got the first error and went back to "Investment Income - 1099-B or broker statements" and entered the cost basis information, I still had had to fix this.

[JamesG1]

You are correct.  Total amount paid is the cost basis for the investment.  The hyperlink Learn more to the right has a more complete explanation.

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.

@HateUsernamesAlways 

[DubsNiners]

@RTW111 Did you figure this out?  I am also only seeing seller payout on the transactions download,  but not the buyer and seller fees mentioned by @SPHood.   The payout matches what I have on record.  However,  this does not match up with the 1099-K at all due to the fees.   While we can put proceeds and cost basis in separately,  the 1099-K overstates proceeds so can't be directly matched without buyer and seller fees info per transaction.

[DubsNiners]

"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."

This doesn't work in this scenario,  since the 1099-K box 1a does not match the seller proceeds as listed in the Ticketmaster transactions spreadsheet due to seller and buyer fees being reflected in the 1099-K.

[JamesG1]

"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."

As an example, you sold one ticket for $100 and Ticketmaster added a fee of $20.

The IRS form 1099-K reports $120.  Report the $120 as the Box 1a amount and Proceeds.

Add the $20 to the Total amount paid cost basis of ticket.  Or report the $20 at the screen Let us know if any of these situations apply to this sale under I paid sales expenses...

@DubsNiners 

[madguru]

I dont get a place holder. This is very frustrating. 

[JamesG1]

Are you using the Deluxe version of TurboTax?  Reporting of IRS form 1099-B and IRS Schedule D requires Premium version.

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), click to the right.
• 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.

@madguru 

[wildcat7477]

JamesG1, thank you for your April 6 post.  I don't know if it's just my version of TT Premier, but the navigation instructions you cited don't follow my version of TT.  That said, I still can get to the screens you discuss that are at the heart of the issue.  I have several questions to follow up.

1) On my "Your 2024 Income Summary" screen, there is a "Income from 1099-K" subheading where I click on Personal Item Sales which gets me to the "Let's get the info from your 1099-K" screen you reference.  On this screen there is a question "Enter the amount that shouldn't be included".  My question, If your Live Nation/Ticketmaster 1099-K Box 1a showed an amount greater than the proceeds you actually received (the buyers fee plus your seller's fee being the difference, likely), then do you enter -zero- or do you enter the amount of the difference?

2)  The next screen in TT (after the above) is titled "Personal Item Sales" and asks for the amount if you sold some items "at a loss or had no gain".  If you have a basis of $200 and you sell the item for $150, am I correct in assuming you should enter $150 here?

Thank you.