Posted on 09/26/2023 8:35:31 AM PDT by frogjerk
Tax reporting threshold drops from $20,000 to $600
Average Taylor Swift ticket re-sold for $1,600
IRS will send out 44 million 1099-K forms this upcoming tax season
(NewsNation) — It was a summer of record-breaking ticket sales for live events. From Taylor Swift to Lionel Messi, fans shelled out thousands to see their favorite stars in person.
Scalpers made huge profits by selling their tickets for exorbitant prices, and now the IRS wants a piece of the pie.
A new tax regulation enacted under the American Rescue Plan Act says anyone who receives over $600 from a settlement organization like Venmo, CashApp, Ticketmaster or StubHub will now have to report those earnings to the IRS.
This change comes in the wake of big-name concerts in 2023, including Beyonce’s “Renaissance Tour” and Taylor Swift’s “The Eras Tour.”
The average ticket for Swift’s tour sold for just under $1,100 on StubHub and $1,600 on SeatGeek. The best seats sold for exponentially more.
FAQ: How the IRS is using AI to crack down on tax evasion In the past, ticket sellers only had to report earnings if they made more than $20,000 and at least 200 transactions a year.
Now, if anyone makes $600 or more, their earnings will be reported to the IRS, regardless of how many transactions.
Anyone who eclipses that $600 threshold can expect to receive a 1099-K tax form. This applies to everything from concert tickets to a side hustle on Etsy or Venmo. It is not meant to include reimbursements.
(Excerpt) Read more at newsnationnow.com ...
Did you send $600 or more to your college aged kid over the year? Get ready to fork over more taxes.
With Biden’s digital dollar there will be no need for the IRS and the government will have it all and say nope you can’t buy that or that or that
“Did you send $600 or more to your college aged kid over the year? Get ready to fork over more taxes.”
Gifts and personal expenses are excluded. Flag as “Non-Business”.
Just putting the ticket brokers under the big federal THUMB.
Nothing new.
Those 85,000 armed IRS agents are NOT for the billionaires.
They are going after gig workers, and they are going to imprison as many of them as possible.
how is that taxable?
“Did you send $600 or more to your college aged kid over the year? Get ready to fork over more taxes.”
That is not taxable.
I have mixed feelings about this. I hate government intrusion. On the other hand, suppose some grocer buys a load of vegetables and resells them at a profit. He has to pay taxes on his profit. Shouldn’t a ticket scalper have to do the same?
I sold something on EBAY and had to set this up because it was over $600.
My lawn guy, and the cleaning lady can’t be very far behind.
they are just using scalpers as an example cuz everybody hates scalpers
the 1099k net is going to catch a lot more than scalpers
Why would ticket scalpers be any different?
Is there a penalty for ‘structuring’, i.e. several transactions of $599 to avoid the ‘$600 rule’?
So, is someone who is paying rent supposed to send a 1099 to their landlord?
Yes, it’s not taxable.
But if it’s on a 1099, you need to be able to prove it’s not taxable.
https://www.irs.gov/businesses/understanding-your-form-1099-k
Who Gets Form 1099-K
You should get Form 1099-K for these situations:
If You Received Any Payments With Payment Cards
This includes credit cards, debit cards and stored value cards (gift cards).
This includes payments for a personal item you sold or for goods you sell, services you provide or property you rent through any:
Peer-to-peer payment platform or digital wallet
Online marketplace (sale or resale of clothing, furniture and other items)
Craft or maker marketplace
Auction site
Car sharing or ride-hailing platform
Real estate marketplace
Ticket exchange or resale site
Crowdfunding platform
Freelance marketplace
Gifts or reimbursement of personal expenses from friends and family should not be reported on Form 1099-K. They are not payments for goods or services.
“So, is someone who is paying rent supposed to send a 1099 to their landlord?”
1099-k is sent by the third-party payment service.
Bingo, very observant. You win the thread prize.
“But if it’s on a 1099, you need to be able to prove it’s not taxable.”
It shouldn’t be on a 1099-k.
I would believe gifts would be excluded. Cash is still cool as would be a pre paid $ card. What’s a guy or gal to do? Put 450k in your closet, just in case?
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