The taxman may be coming after your profits if you resold tickets this year.
After such high-priced events as Taylor Swift’s “Eras Tour,” the IRS is looking to get its piece of the resale pie.
A new law has companies like Ticketmaster and StubHub reporting users to the IRS if they sold more than $600 worth of tickets this year, The Wall Street Journal reported.
It doesn’t matter if the person reselling the tickets turned a profit, only that they sold tickets worth more than $600, Fox Business reported. If they made a profit by selling it for more than they originally paid, the ticket seller would have to pay additional taxes.
The average price for Swift tickets was $1,095. Beyoncé's tickets went for $380 and Harry Styles were $400, according to the newspaper.
The reporting threshold was changed from $20,000 via 200 or more transactions to $600 under the American Rescue Plan Act. The IRS will issue guidance for taxpayers who may receive the 1099-K form, Fox Business reported.
Ticketmaster has an FAQ page that explains how to register on a taxpayer’s information and if or when you will receive a 1099-K.
There is a push in Congress to revert the threshold back to $20,000, but Fox Business reported that it is unclear if changes could be made before tax filing season. There are other proposals that would have the threshold at $10,000 for 50 transactions, The Wall Street Journal reported.