Q&A of the Week October 4, 2023
Question
I made money selling my tickets for the Taylor Swift concert. Do I have to claim this as income on my 2023 tax return?
Answer
Income from ticket sales has always been considered taxable income. In 2023, the American Rescue Plan Act lowered the amount that companies like Ticketmaster and StubHub are required to track, and this information will be provided to the IRS.
If you made over $600 on your concert ticket sale, you must fill out IRS Form 1099-K. You will be taxed on the profit only.
The gain for the ticket resale is treated as a short-term capital gain if you had the concert tickets for less than one year. Likewise, tickets held for over a year are generally treated as long-term capital gains.
The amount you owe depends on four factors:
The price you originally paid for the ticket(s)
The price you sold the tickets for, minus the fees taken out by the resale website
The length of time you had the tickets before you sold them
Your taxable income for the year in which you sold the tickets
Please note: this is not just limited to Taylor Swift concert tickets!