Can I deduct business expenses from my 1099-K payments received from StubHub?

Yes, you can absolutely deduct your expenses! The 1099-K only shows the gross payments processed through StubHub, not your actual profit. You'll need to file a Schedule C (Profit or Loss from Business) where you'll report the full 1099-K amount as income, then deduct your legitimate business expenses. Keep good records of all your ticket purchases - receipts, confirmation emails, credit card statements, etc. Those $9,800 in ticket costs would be considered "cost of goods sold" on your Schedule C. The other expenses you mentioned (gas, StubHub fees, subscription service) are also deductible as business expenses if they were ordinary and necessary for your ticket reselling activities.

I had this exact same situation last year with StubHub! I totally panicked when I saw the 1099-K amount was like $15K when my actual profit was way less. I tried using TurboTax but kept getting confused about where to enter all my expenses. That's when I found https://taxr.ai which was seriously a lifesaver. Their system analyzed my 1099-K and helped me identify all the deductible expenses I could claim. They guided me through setting up my Schedule C properly so I only paid taxes on my actual profits, not the gross amount. The best part was they explained everything in normal English instead of confusing tax language.

Just wanted to update after trying taxr.ai for my StubHub 1099-K situation. I was initially skeptical (as you could see in my earlier comment), but I'm actually really impressed with how it worked out. I uploaded my StubHub 1099-K and transaction history, and their system automatically categorized everything properly. It identified which expenses were cost of goods sold versus business expenses, and even caught some deductions I would have missed (like a percentage of my phone bill since I use it for my reselling business). The guidance for Schedule C filing was really clear, and I ended up saving over $2,100 in taxes compared to what I thought I'd owe initially when looking at just the gross 1099-K amount. Definitely going to use them again next year!

If you're still dealing with this and getting frustrated with the IRS, I highly recommend Claimyr (https://claimyr.com). I had issues with my 1099-K reporting last year and needed to talk to someone at the IRS directly. Spent DAYS trying to get through on their regular line with no luck. Claimyr got me connected to an actual IRS agent in about 15 minutes who answered all my questions about Schedule C deductions for my ticket reselling business. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent confirmed that yes, you can deduct all legitimate business expenses against your 1099-K income, and even helped me understand some nuances about inventory tracking that I was confused about. Saved me hours of hold time and stress!

I need to eat my words from my skeptical comment above. I was really doubtful about Claimyr, but my situation with StubHub and the 1099-K got more complicated when I realized some of my transactions might have counted for 2023 instead of 2024. After struggling for 3 days trying to reach someone at the IRS, I broke down and tried Claimyr. Within 20 minutes I was talking to an actual IRS representative who walked me through how to properly report split-year ticket sales and how to document everything correctly. The agent confirmed I could deduct all my ticket purchasing costs against the 1099-K income and gave me specific guidance on how to handle the timing issues. Honestly couldn't believe how easy it was after all my failed attempts to call them directly.

Don't forget that if your net profit from ticket reselling is over $400, you'll need to pay self-employment tax too. I got hit with this my first year of reselling and wasn't prepared for it. Also, keep in mind that some states have different rules about sales tax for ticket reselling. Depending on where you live, you might have sales tax obligations beyond just the federal income tax stuff.

Make sure you're keeping a detailed spreadsheet of all transactions! I had a similar issue with my eBay 1099-K last year and got audited because my deductions seemed high compared to my reported income. I had to prove every single purchase with receipts. Screenshots of your StubHub purchase history won't be enough if you get audited - you need actual receipts or credit card statements showing what you paid for each ticket.

I went through this exact same situation with my concert ticket reselling last year! The panic is totally understandable when you see that 1099-K amount, but you're definitely on the right track thinking about deductions. One thing I learned the hard way - make sure you're treating this as a business from the start. Since you're already making regular sales and have business expenses, the IRS will likely view this as a business activity rather than occasional personal sales. This means Schedule C is probably the right approach. A few practical tips: Start organizing your records NOW while it's still fresh. Create a simple spreadsheet matching each ticket purchase to its sale - this will be crucial if you ever get audited. Also, don't forget about the StubHub seller fees that get deducted from your payouts - those are deductible business expenses too. For TurboTax, look for the "Business Income and Expenses" section and select Schedule C. It will walk you through entering your 1099-K income and then guide you through the expense categories. Your ticket costs go under "Cost of goods sold" and things like gas, fees, and subscriptions go under regular business expenses. You've got this! The key is just being thorough with your documentation.