Taylor Swift ticket resellers will have to pay taxes on profits in 2024
Tickets for the superstar’s ‘The Eras Tour’ on the secondary market were quoted with significant mark-ups, but authorities want a slice of that.
Taylor Swift sparked an unprecedented ticket demand for “The Eras Tour” when she announced her global tour in the course of 2023. The 33-year-old singer’s fans had to wait five years to see her live, and all tickets were under the control of Ticketmaster in the United States.
Due to the high demand, there were numerous system failures, and many people missed the opportunity to purchase tickets during the presale. Can you imagine the Swiftie screams!? They had to resort to buying them on the resale market, with prices to see Taylor in various states of the North American country ranging from $2,000 to $20,000. And some people go hungry!
Swift resellers to pay taxes in 2024
From the data gathered, the average ticket price for “The Eras Tour” were resold at $2,183 in the secondary market, but it is likely that these sellers will have to pay taxes next year. According to Certified Financial Planner Tommy Lucas of Moisand Fitzgerald Tamayo, resellers could receive IRS Form 1099-K in the upcoming tax season.
What is the ticket resale tax limit?
“Starting early next year, you should ensure that you know how to report these earnings,” stated Lucas. The reason being that they are likely to surpass the new reporting threshold for commercial transactions on platforms such as Ticketmaster, eBay, Zelle, Venmo, and PayPal. In this case, if the earnings exceed $600, as opposed to 200 transactions totaling over $20,000.
Individuals who earned more than $1,000 reselling Taylor Swift tickets “easily surpass that $600 threshold for this year,” said CFP James Guarino, Managing Director at Baker Newman Noyes in Boston. He is also a Certified Public Accountant. It is advisable for individuals to maintain a record of their sales transactions.