Off-Topic StubHub Now Requiring SSN's due to new IRS Reg

[SpikeUM]

I mean, if they are taxing you on your profits for the sale of an asset, wouldn't they have to allow losses as well? As long as you are declaring everything?

If you sell your house or car at a loss, you cant deduct.

 

[Cryptical Envelopment]

If you sell your house or car at a loss, you cant deduct.

Yeah because you use them. But if its a small "business," like you are trying to flip tix consistently, then you can try to claim the ups and downs.

Any way it's what I would do lol.

 

[SpikeUM]

Yeah because you use them. But if its a small "business," like you are trying to flip tix consistently, then you can try to claim the ups and downs.

Any way it's what I would do lol.

I truly dont know the answer....if you put your tickets up for sale for every game, you might have an argument that its a biz. If you do it just once, then probably not.

 

[SpikeUM]

ACTION REQUIRED: Your account has been blocked, TIN needed

 

[slemiet]

I got the email from them today. This is a major pain in the ***, and $600 is way too low. What happens if you have a loss, can you now deduct it? @TheOriginalCane

Beginning January 1, 2022, new IRS regulations require StubHub to generate a Form 1099 for accounts that meet or exceed $600 in gross sales within the 2022 calendar year. In order to generate a Form 1099 as required by state and federal tax laws, we’ll need your Taxpayer Identification Number (TIN). Your TIN is typically either your Social Security Number (SSN) or Employer Identification Number (EIN) for businesses.

How would you offset the cost of the ticket you listed?

 

[JD08]

I guess it's a good thing that CIS added a ticket forum to sell your tickets.

 

[JD08]

ACTION REQUIRED: Your account has been blocked, TIN needed

I worked at a place that had a guy in a director level position as a contractor for 12 years. His TIN was a single digit number padded with 8 leading zeroes.

 

[SpikeUM]

Opinion | If You Dread the IRS Now, Wait Until You Get a 1099-K

Under a new law, many more transactions are being tracked. Next tax season will be a nightmare.

www.wsj.com

 

[SpikeUM]

@TheOriginalCane @wspcane

So do you list all of your tickets on Stubhub/ticketmaster, and deduct the unsold from the income amount?

 

[Fluffhead]

@TheOriginalCane @wspcane

So do you list all of your tickets on Stubhub/ticketmaster, and deduct the unsold from the income amount?

If they want to treat this as a business, I think that is perfectly reasonable as a deductible expense. Truly so stupid and such a drop in the bucket.

 

[SpikeUM]

If they want to treat this as a business, I think that is perfectly reasonable as a deductible expense. Truly so stupid and such a drop in the bucket.

But sports tickets are not normally deductible as a business expense.

 

[Fluffhead]

But sports tickets are not normally deductible as a business expense.

Are they deductible as a COGS for ticket brokers? They are not deductible as an entertainment expense. I think this is different. How would you treat it if you sold a vacation house that you rented out at a loss or if your rental income was less than your mortgage and other costs? Is it any different?

Another thought it apparently what the stub hub 1099 will say is your gross sales. You need to deduct the fees and cost of ticket from that. So take from that what you will.

 

[Cribby]

Yet Nancy PelosI and the rest of the politicians insider trade , making millions lol. But the government watches people making money on cash app and stub hub. What a time to be alive.

 

[Andrew]

Yet Nancy PelosI and the rest of the politicians insider trade , making millions lol. But the government watches people making money on cash app and stub hub. What a time to be alive.

I hate it because I have Braves season tickets but I also know someone making over 100k a year by flipping tickets.

 

[WanderFranco]

But sports tickets are not normally deductible as a business expense.

I've gone through all of this on sports card message boards, because the $600 threshold is affecting that hobby the same way.

If you want to go the easiest route, you can deduct the cost of goods sold. If you sold $600 worth of tickets that cost you $400, then you only pay tax on the $200 profit. The caveat here is that you can't take a loss. If you had to dump some tickets for $600 that you paid $700 for, you can't take a $100 loss on your income. It would just even out at zero.

If you want to take losses and/or deduct more expenses like internet, home office, travel, etc., then you would have to file as a business on a Schedule C. For most small timers who make a couple thousand on the side, this isn't worth the effort.

 

[SpikeUM]

I've gone through all of this on sports card message boards, because the $600 threshold is affecting that hobby the same way.

If you want to go the easiest route, you can deduct the cost of goods sold. If you sold $600 worth of tickets that cost you $400, then you only pay tax on the $200 profit. The caveat here is that you can't take a loss. If you had to dump some tickets for $600 that you paid $700 for, you can't take a $100 loss on your income. It would just even out at zero.

If you want to take losses and/or deduct more expenses like internet, home office, travel, etc., then you would have to file as a business on a Schedule C. For most small timers who make a couple thousand on the side, this isn't worth the effort.

Thank you, is it by transaction or in total, i.e. if I made money on one and lost money on another, can I net?

 

[Fluffhead]

Thank you, is it by transaction or in total, i.e. if I made money on one and lost money on another, can I net?

I would net... all StubHub sales, as an example, would be lumped together on one 1099. Similarly, this, to me, would constitute one activity. Also not too dissimilar from netting a loss on one stock sale with a gain on another.

 

[WanderFranco]

Thank you, is it by transaction or in total, i.e. if I made money on one and lost money on another, can I net?

They are going to report one amount on the 1099. Then you add up your COGS to see how it compares to that total.

 

[OriginalCanesCanesCanes]

I hate it because I have Braves season tickets but I also know someone making over 100k a year by flipping tickets.

That series win came out of nowhere last year didn’t it? Especially how they looked around all star game.

 

[TheOriginalCane]

I got the email from them today. This is a major pain in the ***, and $600 is way too low. What happens if you have a loss, can you now deduct it? @TheOriginalCane

Beginning January 1, 2022, new IRS regulations require StubHub to generate a Form 1099 for accounts that meet or exceed $600 in gross sales within the 2022 calendar year. In order to generate a Form 1099 as required by state and federal tax laws, we’ll need your Taxpayer Identification Number (TIN). Your TIN is typically either your Social Security Number (SSN) or Employer Identification Number (EIN) for businesses.

Sorry, my friend, just saw this post, @SpikeUM ...

Filing a 1099 is something that just notifies the IRS as to gross revenue. If you had a "side hustle" business that you report on Schedule C, you could include it with your Uber and AirBnB revenue. But, yes, expenses can be deducted.

I'm not sure if StubHub will report the gross sale revenue, and then YOU have to deduct the fees, or if they will just report the net payout to you. Either way, you can then deduct what you paid to UM (or TicketMaster, etc.) to purchase the tix.

So what you should do is:

1099 Reported Revenue
LESS: StubHub Fees (if not already included)
LESS: Amount paid to get tickets
LESS: Fees paid to get tickets

If you lose money, good for you (speaking strictly from the tax-savings standpoint, not the personal economic standpoint)...

Now, it is up to you, your conscience, and your tax advisor if you want to try to squeeze "mlleage" and "home office deduction" expenses in there too, but I would strongly advise you NOT to get too cute...