Taylor Swift fans who resold tickets for an average of $2,183 on the singer’s The Eras Tour may find themselves owing taxes on the profits. TicketIQ, a resale research site, reported the average resale price, and with the new IRS reporting threshold for business transactions on third-party platforms set at a single payment of $600, many ticket resellers could be affected. The IRS reporting requirement now covers a broader range of transactions, making it important for taxpayers to be prepared as the law takes effect in the upcoming tax season.

Taxpayers who receive business payments exceeding $600 from e-commerce platforms like Ticketmaster, eBay, Venmo, and PayPal will receive Form 1099-K during tax season. This form will be crucial for reporting income from reselling tickets or other goods and services. The lower threshold of $600 makes it more likely that individuals engaging in various transactions on these platforms will be affected.

To prepare for the new reporting requirement, taxpayers should keep track of sale transactions, especially when using platforms like Venmo and PayPal. It’s crucial to maintain records of these transactions, as closing the accounts used for these transactions will complicate record-keeping. Additionally, keeping copies of purchase receipts for goods later resold, such as concert tickets, is important, as taxes owed will be based on sales proceeds minus the original purchase price.