Skip to main content
Level 2
November 21, 2022
Question

Season Tickets cost basis

  • November 21, 2022
  • 1 reply
  • 3 views

I have a season ticket package for an NHL team. Each package is 40 regular season game and 2 pre-season games for one price.

The box office uses surge pricing for non-package purchases, meaning that the same seat costs different prices for different games. For example, the more popular the opponent, the higher the price and the more preferable day of the week, the higher the price.

The result is that I have sold some seats way below box office price but above the average ticket price in the package.

 

Is the cost basis strictly (price of package + fees) / number of games

or can the surge pricing be taken into effect somehow?

    1 reply

    Level 15
    November 21, 2022

    @bu11durm - first the broader question

     

    did you buy these tickets for personal use, as part of a business, as a hobby to buy / sell tickets? 

     

    it may help others who respond to understand your motives.....

    bu11durmAuthor
    Level 2
    November 21, 2022

    for personal use or to sell? a bit of both.

    I would have bought a partial season package for personal use. But then, I upgraded to a much larger package (full season) for some of the other benefits but with the full intention that a good portion of the tickets would be sold (hopefully for a profit).

    Level 15
    November 22, 2022

    if this is a hobby. the income is taxable and the expenses are not deductible.

     

    suggest reading these links: 

     

    https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses

     

    https://www.irs.gov/newsroom/tips-for-taxpayers-who-make-money-from-a-hobby