The lights dim, and you can feel the excitement in the air like an electric charge, rippling through the crowd as anticipation grows. Nothing can quite match the surge of emotions when the show starts – especially in the crowd gathered to hear one of our generation’s most famous singer-songwriters.
Getting into Taylor Swift’s Eras Tour was no easy feat, and some entrepreneurial Swifties (or those poised to take advantage of a good market) were able to earn some cash selling extra tickets. The move may have helped offset the cost of their ticket or was simply a business strategy to earn a little extra cash.
In either scenario, the Internal Revenue Service (IRS) only sees one thing: income.
Are taxes due if I sold an Eras ticket?
Nothing kills a good time quite like the threat of taxes. There are certain situations when the sale of a product, like a ticket to the Eras concert, may trigger Uncle Sam’s attention. As written, the law stated that any proceeds of $600 or more would trigger reporting and the taxing authority would send the taxpayer a Form 1099-K with further information.
What if I made a lot of money by selling these tickets?
The good news is that the IRS has yet again pushed back its requirement to report $600 or more earnings in these transactions and may increase the reporting threshold. However, it is important to note that the agency will generally require taxpayers to report the use of third parties like Stub Hub for transactions that result in proceeds of over $20,000 and more than 200 transactions during the 2023 tax year.
What if I ignore a letter from the IRS?
It will take more than good karma to fix bad blood with the taxing authorities. Those who receive notification from the IRS are wise to review the correspondence and take appropriate action. It is wise to gather a team of professionals to help defend your rights if you receive notification of an impending audit from the IRS. The attorneys at Goldburd McCone are experienced with these types of cases and can help to better ensure a more favorable outcome.