I've been in the ticket reselling business for about 4 years now, and I can definitely confirm that expired/unsold tickets are legitimate inventory losses. The IRS treats them just like any other business that has unsold merchandise - once the event passes, those tickets have zero fair market value. For your Taylor Swift tickets specifically, since you bought them with the intent to resell (even if it was just part of your side business), they qualify as business inventory. When they went unused, that's a $280 loss you can absolutely deduct against your ticket reselling profits. The most important thing is maintaining good records. I always keep: - Original purchase confirmations/receipts - Screenshots of any sales attempts (StubHub listings, Facebook posts, texts to potential buyers) - Documentation of the event date passing - Bank statements showing the purchase One thing I learned the hard way - don't wait too long to claim these losses. File them in the tax year the event occurred, not when you finally give up trying to sell them. So those Taylor Swift tickets from this year should be claimed on your 2024 return. The fact that you're making legitimate profits from successful flips shows clear business intent, which is exactly what the IRS looks for to distinguish this from hobby activity.

I've been dealing with similar ticket reselling tax questions and wanted to share what I learned from my accountant. The unsold ticket deduction is definitely legitimate, but there's one important detail that hasn't been mentioned yet - you need to be careful about how you classify yourself. If this is truly a "side gig" like you mentioned, make sure you're prepared to demonstrate business intent to the IRS. They look for things like: keeping business records, having a separate business bank account (even if it's just a designated checking account), treating it consistently as a business activity, and making genuine efforts to be profitable. For your $280 Taylor Swift tickets, absolutely claim that loss. But also document WHY they went unsold - was it because the market price dropped below what you paid? Did you list them but get no buyers? This kind of documentation helps establish that you were genuinely trying to operate a business, not just buying tickets speculatively. One more tip: consider tracking your time spent on this activity. Even if it's just a few hours a week, having a log of time spent researching, listing, communicating with buyers, etc. can help support the business classification if you ever need to justify it. The tax savings from properly deducting these losses can be significant, so it's definitely worth doing it right!

Miguel, don't feel embarrassed at all - partnership taxation is genuinely complex and your questions are spot on! I went through this exact same confusion when our small consulting group formed an LLC. You're absolutely right that you'll file Form 1065 and each partner will get a K-1. When you file your personal 1040, the K-1 income/loss goes on Schedule E (Supplemental Income), NOT Schedule C. This is a crucial distinction - Schedule C is only for sole proprietorships. For those business expenses you mentioned (car, equipment), here's what I learned: these should be handled at the partnership level on the 1065, not on your personal returns. The partnership takes the deduction, then your share of the reduced profit flows to your K-1. If you've already paid for business stuff personally, you have two clean options: 1. Have the LLC reimburse you (with receipts and documentation) 2. Treat it as a capital contribution to the partnership Either way, the deduction happens on the 1065. Don't try to deduct business expenses on your personal return while also reporting K-1 partnership income - that mixes two different tax treatments and can raise red flags. My biggest recommendation: set up an expense reimbursement policy in your operating agreement ASAP. It'll save you headaches down the road and create the paper trail you need for tax compliance.

I just went through this exact situation with my 4-member LLC last tax season and wanted to share what worked for us! The learning curve is steep but totally manageable once you get the basics down. First, you're on the right track with Form 1065 and K-1s. Each partner reports their K-1 income on Schedule E of their personal 1040 - definitely NOT Schedule C. I made that mistake initially and had to amend my return. For business expenses paid personally, we developed a simple system: anything under $100 gets submitted monthly for reimbursement with just a receipt and quick description. Larger expenses need pre-approval via our group chat. The LLC reimburses within 30 days and takes the deduction on the 1065. One thing that really helped us was opening a dedicated LLC business account and credit card right away. It makes tracking partnership expenses so much cleaner than trying to sort through personal purchases later. Also, don't stress too much about getting everything perfect in year one. We made some mistakes with expense categorization and documentation, but we learned from them and tightened up our processes. The important thing is establishing good habits early and being consistent about separating partnership business from personal finances. Your friend group LLC sounds like it's starting off on the right foot by asking these questions upfront!

Hey, anyone know if I need to report cryptocurrency transactions on Sprintax too? My Robinhood 1099 has some Bitcoin trades along with my stocks, and I'm not sure if the process is the same.

I went through this exact same situation last year as an international student! The key thing that helped me was understanding that Sprintax wants you to enter the summary totals from your Robinhood 1099-B, not individual transactions. Here's what worked for me: Look at your Consolidated 1099 and find the 1099-B section. At the bottom of each category (short-term covered, long-term covered, etc.), there are summary lines showing total proceeds and total cost basis. Use those numbers when Sprintax asks for your capital gains information. One thing to watch out for - if you see any transactions with adjustment codes (like "W" for wash sales), make sure those adjustments are reflected in your summary totals. Robinhood should have already included these in their summary calculations, but double-check the math. Also, as an international student, remember to check if your tax treaty covers capital gains. Most don't, which means you'll pay the standard rates on any profits. But it's worth confirming based on your specific country's treaty with the US. The process is definitely confusing the first time, but once you understand that it's all about those summary totals rather than individual trades, it becomes much more manageable!

stuck in the same boat rn trying to decide. think im gonna go with chime after reading all this

I switched from Emerald to Chime last year and honestly best decision ever. Chime gets my refund 1-2 days earlier consistently, plus zero fees for basic stuff like ATM withdrawals (as long as you use their network). The Emerald card nickel and dimes you for everything - even checking your balance sometimes. If you're just looking for fast refund deposits, Chime is definitely the way to go.

Has anyone else noticed that Schedule C is a nightmare for these borderline situations? Like last year I had a client pay me in gift cards (weird but whatever) and I had no idea how to report it.

Great discussion here! As someone who's dealt with similar situations, I want to emphasize what Teresa mentioned about checking for that 1099-MISC - that's really the key factor. I had a comparable situation with a bank sign-up bonus that I used for business equipment. The bank sent me a 1099-INT for the bonus amount, so I had to report it as income but then could deduct the full equipment cost. One thing to watch out for: even if you don't get a 1099 this year, some credit card companies have been changing their reporting practices. Keep good records of the promotion terms and your purchase receipts just in case the IRS ever questions it. The fact that you're being thoughtful about this now shows you're on the right track! For your current situation with no 1099, sticking with the $40 out-of-pocket deduction is the safe approach.