IRS Will Now Tax Profits From Re-Sold Concert Tickets
The IRS is coming for the profits made from tickets sold at a marked-up price. A new law will tax all ticket resellers who made over $600 from the endeavor.
The IRS is demanding that ticket distribution companies, including Ticketmaster and Stubhub, inform the government of all individuals who profited substantially from the reselling of tickets, as confirmed by Complex. However, what is deemed “substantial” has now significantly decreased, as the original regulation only required taxes to be paid on profits of $20,000 accumulated from 200 or more transactions annually.
This new ruling is part of the American Rescue Plan Act and comes at the heels of skyrocketing resale prices on multiple tours that commenced in the past year, such as Beyoncé’s Renaissance World Tour and Taylor Swift’s Eras Tour. The new stipulation is an effort to regulate ticket scalpers who take advantage of high demand by charging exorbitant prices.
In the announcement, the IRS detailed how ticket resellers making a sizable profit margin must now file a 1099-K form to comply with the new tax law.
“Payment apps and online marketplaces are required to file a Form 1099-K if the gross payments to you for goods and services are over $600,” stated the agency. “The $600 reporting threshold started with tax year 2023. There are no changes to what counts as income or how tax is calculated.”
The news will be a relief to fans, as ticket resellers who have made a livelihood out of obtaining tickets to boost their purchase value will now think twice about its feasibility. The venture itself is quite lucrative: The Wall Street Journal reports that the IRS expects 44 million forms to be issued in regard to newly added taxable income.
As for the ticket distribution companies themselves, President Joe Biden has also been adamant on stopping excessive charges when fans go to purchase tickets, tweeting on Sept. 23 his ongoing plan to stop “junk fees.”
Concert tickets are hard enough to get, you shouldn’t have to pay surprise service fees on top of that.
My Administration is working to crack down on those junk fees, so you know what you are paying for up front.
— President Biden (@POTUS) September 24, 2023
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