Buffalo, N.Y. (WBEN) - As many Buffalo Bills fans gear up for the playoffs, some fans may be looking to sell tickets for one reason or another. This year, the IRS has lowered the automatic report triggering threshold at $600.
The Tax Lady Esther Gulyas of EG Tax says ticket sale profits have always been taxable, but the IRS has set up a new rule.
"If you have a third-party place, which would include anything that you do where there's a third-party venue getting extra income, that's all going to be reported on the 1099-K form in 2025," explained Gulyas with WBEN.
Last year, the threshold was $5,000.
If you hit that threshold, Gulyas says the 1099-K form is generated, and you then would have to report it on a schedule C, self-employment, and then reduce that by the expense of the tickets, and the balance would be subject to Social Security tax and income tax.
Nick Giammusso of VIPTIX.com says it could be really easy to hit that threshold, considering the rising prices of sports and concert tickets.
"In the concert business, especially, ticket prices are easily $300 and over. So it could be quite easy to meet that the IRS threshold of $600," said Giammusso in an interview with WBEN.
Giammusso believes that threshold is definitely going to affect people that even sell a couple tickets. Could this deter fans from selling tickets entirely?
"You see what the Bills prices are for the new stadium, and that could significantly impact people's decisions to maybe buy tickets in the new stadium, because without the ability to resell and recoup some of that investment, it's going to be difficult for people," Giammusso said.
Giammusso adds when you have an IRS threshold of $600, it is going to bite into people's profits and what they can recoup.