MS on Event Tickets
Apr 26, 2019, 4:22 pm
#31
Join Date: Mar 2016
Posts: 398
The quotation from the IRS Guidelines is quite helpful. It is key that there are two criteria, joined by the conjunction “AND”. That means that BOTH criteria must be satisfied before the IRS will find that a business exists:
(1) The activity is “for income or profit,” AND
(2) The activity is done on a regular basis.
We have already established (and the OP agrees) that there is no net income or profit, nor any desire for income or profit. Therefore, the OP’s ticket purchases fail to satisfy the first criterion, rendering the second criteriion moot.
(if the second criterion were the sole test, then every FTer who buys Visa gift cards every week would be a business, as I have pointed out previously.)
Repeatedly in this thread (posts 7, 19, and 24), I have posited several detailed scenarios that appear to be indistinguishable from the OP’s situation (buying gift cards, restaurant meals, concert tickets, etc.). I am still waiting for my chief critic to distinguish these scenarios. The silence is quite telling —— they cannot be distinguished.
The OP is not conducting a business, filing a Schedule C will not make a penny difference in his/her taxes, and the IRS doesn’t care.
I don't think the IRS is going to take it as far as investigating the value of credit card points or cash back percentages, but there may come a time when they want to see whether or not a profit was generated and not reported. As the OP pointed out, if he is just buying at face value and reselling at face value, then there shouldn't be any tax liability. Probably a realistically low chance of audit as well. But i would keep records of all transactions just in case it needs to be shown that no profit was generated.
Apr 30, 2019, 7:51 am
#32
Join Date: Jan 2010
Location: SFO
Posts: 1,749
[QUOTE=ma the OP's friend's business is legit, then it is reporting its transactions - as business - with the OP and informing the IRS as such.
I.[/QUOTE]
If OPs friends business was legit, he would not be asking OP to purchase tickets beyond the maximum amount. The broker is violating the Ticket Terms. Also, have you met any ticket brokers? Them guys are as shady as used car dealers.
(Dont take offense OP, I am stereotyping, being sarcastic and smiling while I type)
Y’all need to chill out OP is buying and reselling at low volume and he will be fine, the IRS will never notice.
Also, OP, be careful you don’t get stuck with tickets you don't want.
I.[/QUOTE]
If OPs friends business was legit, he would not be asking OP to purchase tickets beyond the maximum amount. The broker is violating the Ticket Terms. Also, have you met any ticket brokers? Them guys are as shady as used car dealers.
(Dont take offense OP, I am stereotyping, being sarcastic and smiling while I type)
Y’all need to chill out OP is buying and reselling at low volume and he will be fine, the IRS will never notice.
Also, OP, be careful you don’t get stuck with tickets you don't want.