Originally Posted by
Steve in Olympia
.... Your friend frequently needs four tickets to upcoming concerts, but is allowed to buy only two tickets. By prior arrangement, you buy two tickets for him/her, and the friend later reimburses you for the cost of the tickets. You paid for the tickets because you wanted to earn points.
This description omits the material fact that your friend, by prior agreement, will resell the tickets. This changes the character of the transaction, and you now also have a business relationship.
....because you wanted to earn points means that the
activity is “for income or profit,”
Your friend should send you a 1099. Even if your friend does not do this, keep good records.