Tax Rules for Reselling Concert or Sport Tickets

It’s been a busy summer for concerts and sporting events. Maybe you snagged tickets to watch as Miami’s new hot Argentinian resident makes pink the new color of soccer or to see your favorite queen step into a world of renaissance or a different era – but you decided, after acquiring the tickets, that there was someone more eager for those tickets and willing to pay top dollar.

If you made a profit from reselling concert or event tickets, you may be in for a taxing experience! Just like the ticket prices, the taxes associated with reselling tickets can add up quickly. Whether you’re a seasoned scalper or a rookie reseller, it’s important to understand the tax implications of your ticket-flipping transaction.

If you resell a Taylor Swift or Beyonce ticket through an online marketplace (think Ticketmaster), you may have thought you were going to receive a Form 1099-K if the gross total proceeds of your transactions for the year is more than $600. However, the IRS announced another delay in the lower reporting thresholds for the upcoming filing season. This means that for tax year 2023 (the taxes you file in 2024) you may not receive a 1099-K unless you sold more than $20,000 in payments from over 200 transactions.  

But for tax year 2024 (the taxes you file in 2025), the IRS is currently planning for a threshold of $5,000 as part of the phase in to implementing a lower $600 threshold that was enacted under the American Rescue Plan of 2021. 

So, unless you are a seasoned scalper – reselling frequently – you may not have produced enough volume to receive a Form 1099-K from third party payment processors. However, even if you do not receive a 1099-K for tax year 2023, you should still report all your income from selling goods and services on your taxes. 

If you are in the business of reselling ticketings and you have net earnings of $400 or more, then generally, you may owe self-employment tax. But, if this is a one-time transaction for you, then it’s unlikely you will prompt self-employment tax for these earnings. You should be aware that it could trigger a capital gain. But don’t worry about knowing these tax rules, TurboTax can help you determine how to report your earnings from reselling a ticket when filing your taxes. 

When it comes time to file your taxes and gather your tax documents, have the details of your sale handy. A 1099-K will likely include your gross total for the sale and may not include any fees you paid. Having receipts for those fees associated with the resell of your ticket will be helpful when filing your taxes — because you may be able to deduct those expenses from the total income you received, reducing the amount you are taxed on.

So, if you’ve resold tickets or are considering reselling, make sure you have a show-stopping tax strategy that hits the right notes and keeps you compliant when reselling your tickets for a profit. Meet with a TurboTax Full Service expert who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Live Full Service today, in English or Spanish, and get your taxes done and off your mind.