MS on Event Tickets

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Old Apr 21, 19, 10:31 am
  #1  
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MS on Event Tickets

I stumbled across an opportunity with a ticket broker friend who is now telling me what event tix to purchase and letting me rack up the points so he can resell the tix.

The reason he needs my help is there are limits on how many tickets people can purchase for a given event. It's been a win/win scenario so far. He keeps my risk low by not letting me buy things that are not of value and pays my card directly the same day.

It's a lot easier than multiple trips to Walmart and some cards, like the Capital One Savor, offer 4% back on entertainment.

Has anyone else had luck with other types of MS that don't involve money orders and such? I hate dealing with the people of Walmart.
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Old Apr 21, 19, 2:10 pm
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Iíve done this before, especially with Amex signup bonuses so they donít claw back. Used to do it with Hamilton tickets a couple years ago. Just curious, what sort of events are you buying? Random concerts or sports or broadway?
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Old Apr 21, 19, 2:39 pm
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This is not manufactured spending, it's a business buying and reselling tickets. Keep full records of each transaction, and any incidental expenses, because any net profit is subject to income tax.
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Old Apr 21, 19, 3:01 pm
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Originally Posted by javaguy View Post
Iíve done this before, especially with Amex signup bonuses so they donít claw back. Used to do it with Hamilton tickets a couple years ago. Just curious, what sort of events are you buying? Random concerts or sports or broadway?
Yes, all events, you name it. Celine Dion, Hamilton, WWE.
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Old Apr 21, 19, 3:02 pm
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You are correct. The point for me has been to just break even, not show any profit so I don't have to deal with the tax man. The broker is a business and they keep their own records.
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Old Apr 21, 19, 6:57 pm
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Originally Posted by Miles_Davis View Post
Has anyone else had luck with other types of MS that don't involve money orders and such? I hate dealing with the people of Walmart.
This sounds a lot like "buying clubs', where people in the club buy products that have a limit per person, then are reimbursed by the person who wanted them bought. I have no personal experience with buying clubs so I can't say if they're good or bad, but I have heard of them.
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Old Apr 21, 19, 9:42 pm
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Originally Posted by mia View Post
This is not manufactured spending, it's a business buying and reselling tickets. Keep full records of each transaction, and any incidental expenses, because any net profit is subject to income tax.
The OPís ticket broker friend is in the business of buying and reselling tickets, the OP isnít. The OP is simply letting his friend use the OPís credit card, thereby creating spending on that card that would not have otherwise occurred. That sounds like manufactured spending to me.

If I go to a restaurant with a group of friends, and I pay the tab, and my friends each reimburse me, does that mean that I am in ďthe business of buying and reselling restaurant mealsĒ? No, of course not. But I have increased the spending on my credit card, without actually increasing my own spending. If it walks like a duck and talks like a duck, then it is manufactured spending.

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Old Apr 21, 19, 10:56 pm
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Originally Posted by Steve in Olympia View Post
The OPís ticket broker friend is in the business of buying and reselling tickets, the OP isnít. The OP is simply letting his friend use the OPís credit card, thereby creating spending on that card that would not have otherwise occurred.
OP is buying tickets, and selling them to his friend at cost. That's a business, and based on IRS rules the OP should be filing a schedule C on their tax return. If his friend pays him over 20k in a year, OP's friend should also be filing a 1099k to report the transactions to the IRS.
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Old Apr 22, 19, 6:56 am
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Originally Posted by camaross View Post
OP is buying tickets, and selling them to his friend at cost. That's a business, and based on IRS rules the OP should be filing a schedule C on their tax return. If his friend pays him over 20k in a year, OP's friend should also be filing a 1099k to report the transactions to the IRS.
I think you have a good point, but at the end of the day, even such filing has no impact on my personal revenue and should not impact what I owe the IRS.
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Old Apr 22, 19, 8:53 am
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Originally Posted by camaross View Post
OP is buying tickets, and selling them to his friend at cost. That's a business, and based on IRS rules the OP should be filing a schedule C on their tax return. If his friend pays him over 20k in a year, OP's friend should also be filing a 1099k to report the transactions to the IRS.
And the net result is zero income.

Should I be filing with the IRS when my friends reimburse me for the restaurant meals we share?
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Old Apr 22, 19, 9:12 am
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Does the agency immediately reimburse for the full cost of the tickets, or is reimbursement contingent on re-selling the tickets or otherwise delayed?


Originally Posted by Steve in Olympia View Post
....

If I go to a restaurant with a group of friends, and I pay the tab....
Closer analogy would be if your employer requires you to pay your own expenses and provides reimbursement. You still need to keep records of your expenses that are satisfactory to the IRS.

Last edited by mia; Apr 22, 19 at 9:35 am
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Old Apr 22, 19, 10:03 am
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Originally Posted by mia View Post
Closer analogy would be if your employer requires you to pay your own expenses and provides reimbursement. You still need to keep records of your expenses that are satisfactory to the IRS.
Those are job-related expenses. The OP buying event tickets on behalf of a friend, and then being reimbursed by the friend, are not job-related. Nor is my restaurant example job-related. My example is quite apt: Should I report to the IRS when my friends repay me for their meals? The answer, of course, is ďno.Ē
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Old Apr 22, 19, 10:58 am
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mia
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Originally Posted by Steve in Olympia View Post
[left]

....OP buying event tickets on behalf of a friend....
The tickets are purchased on behalf of a ticket broker. The friendship is irrelevant. The broker will record the reimbursement, and use it for their own accounting and tax purposes to establish the cost of goods sold. The broker should send the OP a 1099 to document the payment. We cannot know if this will actually happen, but I would keep good records.
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Old Apr 22, 19, 11:18 am
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Who knew I would spawn such a tax debate? Good points though!

I will make sure to get the tax accounting into the process. It won't be an issue either way.
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Old Apr 22, 19, 11:30 am
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Originally Posted by mia View Post
The tickets are purchased on behalf of a ticket broker. The friendship is irrelevant. The broker will record the reimbursement, and use it for their own accounting and tax purposes to establish the cost of goods sold. The broker should send the OP a 1099 to document the payment. We cannot know if this will actually happen, but I would keep good records.
Sounds like the OP has found a nice way to rack up some real CC spend, so I'd call this quasi MS.

But I agree with MIA, detailed records should be kept even if there is no "profit motive" from the OP. Though I would think the IRS could argue that the fact that OP's trying to gain points is a profit motive. It all seems pretty low risk either way.
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