Smart check error with 1099-B from 1099-K - concert tickets

[mandyn91]

Last year I sold 2 set of concert tickets on Ticketmaster, one at a gain and the other at a loss. I added both sales and payouts on to 1099-B and they are less than the gross payment amount in box 1a. of 1099-K.  Ticketmaster did not include how much they were sold for including taxes and fees on the supplemental transaction sheet. 

Ticketmaster adds this note on the seller page where the 1099-K is found:

Note that the gross amount you see in Box 1 of the 1099-K will be different from the total of your payouts because it includes taxes and fees (as required by the IRS) and does not adjust for credits, discounts, or refunds.

Smart check gives me this error message but I don't know the full amount either set sold for. The payouts are only included in the emails I received.

Check This Entry
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 sale proceeds to match the amount reported on Form 1099-K.

How do I proceed?

[JamesG1]

I presume that you are entering the Schedule D/Form 8949 information through the IRS form 1099-K process within the software.  Then when the numbers are reported (and reported correctly), the software sees a conflict and generates an error message.  Hopefully, I am understanding correctly?

I would post the Schedule D/Form 8949 entries directly to the software and bypass the IRS form 1099-K process within the software.  IRS form 1099-K is not a form 'required' to be reported like a W-2.  Its purpose to to aid in the reporting of taxable income and that is what we will be doing.

IRS form 1099-K may be removed by selecting the trashcan to the right of the entry at the screen Your 1099-K summary.  

After removing, select Federal Review to make sure that there are no errors remaining before you proceed.

Then enter the Schedule D/Form 8949 information as described below.  The  entries will be recorded as a Personal item so a gain on the sale of a Personal item is reported.  A loss on the sale of a Personal item is not deductible.

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Scroll down to Investments and Savings and click on the dropdown menu.
• Click Start/Revisit to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other.
• At the screen Let's finish pulling in your investment income click Add investments.
• At the screen Let's import your tax info click Enter a different way. 
• At the screen OK, let's start with one investment type, select Other.  Click Continue.
• At the screen Tell us more about this sale, enter 'Ticketmaster - 1099-K' or some similar descriptive.  Click Continue.
• At the screen Now enter one sale, enter the first Ticketmaster transaction with the correct buy and sell information.  Select Personal items as the type of investment.  Click Continue.
• At the screen Review your sales, select Add another sale to enter the second Ticketmaster transaction.

Now you have reported the substance of the IRS form 1099-K even though you have not followed the exact process within the tax software.  In addition, make sure that your personal tax records can show the difference between what the 1099-K reported and the numbers that were reported on the Federal 1040 tax return should the IRS have a question at a later time.