Tuesday, December 12, 2023

Anyone who resells Taylor Swift tickets has to pay taxes

In 2023, resales of live event tickets experienced a boom. Post-pandemic, shows of all kinds generated (and continue to generate) an attraction rare in the entertainment industry.

The ticket resale “boom” is widespread around the world, and Latin America is no exception.

In the United States For example, Taylor Swift’s “Eras Tour” and Lionel Messi’s games at Inter Miami CF led to rapid resales at unprecedented prices. It was something like that that the alarm was raised by the Internal Revenue Service (IRS). the state organization that corresponds to the Mexican SAT.

In fact, many Americans who resold tickets to various shows in 2023 and made money from them are now experiencing an unpleasant surprise: You must pay tax on the profits from the resale of the tickets.

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A new law requires ticket sales platforms such as Ticketmaster and StubHub, Provide the IRS with information about users who sold tickets valued at more than $600 this year.

This measure coincides with the Second market Ticket prices are booming and resale prices for tickets to popular events are exorbitant.

Taylor Swift tickets on sale

For example, the average price of Taylor Swift tickets sold on StubHub was over $1,000, while premium tickets reached thousands of dollars.

Likewise, Lionel Messi vs. Inter Miami CF soccer matches saw a huge increase in ticket prices, reaching $255 per ticket from a starting price of $30.

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This phenomenon was driven largely by amateur resellers, who accounted for about 70% of ticket orders for Taylor Swift’s “Eras Tour” in the United States, a much higher share than usual, according to the Wall Street Journal.

Previously, ticketing platforms only had to submit forms to the IRS about their users’ income if someone earned more than $20,000 in income and made more than 200 transactions.

The new law that came about after the Corona aid package lowers this threshold to $600, regardless of the number of transactions.

This measure aims to make tax evasion more difficult when reselling tickets, and although it was originally scheduled to come into force for the 2022 financial year, Implementation was delayed until 2023.

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Surprise for some

As the tax filing deadline approaches, the IRS expects to receive about 44 million forms (called 1099-Ks) in 2024, a significant increase from the 11.1 million forms received in 2021 under the old one threshold were submitted.

Although the measure aims to increase tax collection on profits from the resale of tickets, it has also sparked controversy as opponents seek to review it and set higher reporting thresholds.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com/
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