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Started By
Message
re: Taxes for selling LSU etc tickets on stubhub, need CPA advice please
Posted on 12/1/22 at 1:28 pm to DallasTiger45
Posted on 12/1/22 at 1:28 pm to DallasTiger45
quote:
Not a tax professional (so this is not tax advice), but I would think if this was a legitimate ticket reselling business you could deduct the tradition fund contribution as a subscription fee (maybe not the correct term, but you get the idea).
If it was a ticket reselling business, it would be a trade or business reported on Sch C (and subject to S/E tax) and not a Sch D gain or loss situation.
Also, by their very nature a re-seller would not be paying trad fund type fees directly to a school. They would be buying thet tickets from someone directly. Whatever cost they paid for those tickets, would be their "costs of goods sold" deducted when the tickets were resold.
This is kind of like the "is it advertising / marketing or is it entertainment or is it charitable" when a company buys a foursome in a golf tournament run by a charity and they get a sponsor board on the hole. We usually end up splitting the expense into several categories.
2
Posted on 12/1/22 at 4:28 pm to secfballfan
It’s $600 I thought.
If you sold a ticket for $70 they aren’t coming for that. Yet.
It’s like with gambling, any big winnings over a certain amount are getting taxed rt away. If you win $5 they just give you the $5 and you deal with it later.
If you sold a ticket for $70 they aren’t coming for that. Yet.
It’s like with gambling, any big winnings over a certain amount are getting taxed rt away. If you win $5 they just give you the $5 and you deal with it later.
Posted on 12/1/22 at 4:33 pm to LSUFanHouston
Sounds about as clear as “reasonable compensation” for the self employed. Gotta love how the IRS leaves things vague enough to come after you and claim you should’ve known better. 
Posted on 12/1/22 at 4:39 pm to LSUFanHouston
quote:
This is one of those situations where "what seems fair" and "what the tax law says" are two different things. We find that a lot with the 2018 tax cut act. It was a poorly, poorly written legislation with tons of unintneded consequences.
The entire tax code is. At least Trump saved me on taxes.
It generally is just too complex for most filers.
And I’m also pretty sure the American rescue plan made even more changes to the code. Extended unemployment more child tax credits.
This post was edited on 12/1/22 at 4:49 pm
Posted on 12/1/22 at 5:30 pm to LSUFanHouston
What type of income would this be considered. My concern is IRS will say it is hobby income and make you claim the entire proceeds of the sale with no deductions.
Posted on 12/1/22 at 7:07 pm to TigerGrl73
(no message)
This post was edited on 12/1/22 at 7:10 pm
Posted on 12/1/22 at 8:47 pm to GeauxldMember
quote:
Sounds about as clear as “reasonable compensation” for the self employed.
Currently in the lead, with a safe margin, in the list of "Audit issues LSUFanHouston has debated the IRS with, over his career".
Posted on 12/1/22 at 8:50 pm to BlackAdam
quote:
What type of income would this be considered. My concern is IRS will say it is hobby income and make you claim the entire proceeds of the sale with no deductions.
The occasional sale would be a capital transaction (Schedule D)
If you were doing this as a business, it would be Schedule C.
Gross hobby income on the tax return includes a deduction for costs of goods sold. So even if they deemed it a hobby, you would still be able to take the costs of the tickets purchased for resale. You just would not get to deduct any other costs (such as listing fees, etc)
This post was edited on 12/1/22 at 8:52 pm
Posted on 12/2/22 at 8:34 am to LSUFanHouston
Gross hobby income on the tax return includes a deduction for costs of goods sold. So even if they deemed it a hobby, you would still be able to take the costs of the tickets purchased for resale. You just would not get to deduct any other costs (such as listing fees, etc)
I thought there was no more deduction for hobby expenses since TCJA. Where is the line to deduct?
I thought there was no more deduction for hobby expenses since TCJA. Where is the line to deduct?
Posted on 12/2/22 at 1:26 pm to BlackAdam
quote:
I thought there was no more deduction for hobby expenses since TCJA. Where is the line to deduct?
You deduct it on the other income line. So it looks like this:
Other Income:
Gross Hobby
Less COGS Hobby
Net Hobby
THis is how you always treated hobby COGS.
All other expenses for hobby were killed, as those were part of itemized deductions which had a bunch of changes applied.
Posted on 12/2/22 at 5:07 pm to LSUFanHouston
I just came to say frick ticket places like stubhub so everyone is going to be better off selling for less for cash. I suppose you could say this for a lot of things and I’m not saying I hate taxes, just ticket resale websites.
Posted on 12/2/22 at 6:11 pm to LSUFanHouston
quote:What does that mean? Plenty of professional ticket flippers pay "tradition fees" and PSLs for the rights to buy tickets.
Also, by their very nature a re-seller would not be paying trad fund type fees directly to a school.
Posted on 12/2/22 at 9:27 pm to Louie T
quote:
What does that mean? Plenty of professional ticket flippers pay "tradition fees" and PSLs for the rights to buy tickets.
PSLs… sure
Not so sure about charitable donations
PSLs have their own tax issues
Posted on 12/3/22 at 12:25 am to secfballfan
Since you no longer get the tax deduction, you can allocate a part of the TAF fee to your cost basis. How much is not really clear. I’m guessing that the IRS will accept either dividing the TAF fee by the number of tickets or allocating them based on the cost of the individual tickets. However, given the amounts that you indicated, I don’t think the IRS is really going to care unless you’ve cumulatively sold over $1,000 this year.
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