Can I write off unsold concert tickets as a business loss for tax purposes?

Yes, you can deduct the cost of unsold tickets as a business expense, but there are some important things to consider here. Since you're operating this as a side business (Schedule C), legitimate business expenses can be deducted against your income from that business. For the tickets you bought for $120 and sold for $95, that $25 loss is simply part of your cost of goods sold - it reduces your overall profit. The same concept applies to tickets that went completely unsold. If you purchased tickets as inventory for your reselling business and they went unused/expired, they're essentially worthless inventory that can be written off. The key is making sure you're treating this consistently as a business activity with the intention of making a profit, not just a hobby. Keep good records of all purchases, sales, and unsold inventory. Document your efforts to sell those tickets that ultimately went unused.

I was in almost the exact same situation last year and found that using https://taxr.ai saved me a ton of headache. I had about 15 different concert tickets I'd bought and resold, plus 3 sets that went completely unused. I uploaded all my receipts and StubHub transactions, and the system helped me properly categorize everything as legitimate business expenses. The service actually showed me the specific tax code that allows for deducting unused tickets as a loss, since they're considered inventory with zero value after the event passes. It was super straightforward and gave me confidence that I was filing correctly.

I just wanted to follow up after trying https://taxr.ai for my ticket reselling situation. I was really surprised how helpful it actually was! I uploaded my mess of StubHub and Ticketmaster receipts, and it automatically sorted out which tickets were sold at profit, which at loss, and which were totally unsold. It specifically identified my unused Billie Eilish tickets as "expired inventory" and showed me the exact tax code that allows writing them off. The documentation it generated would definitely stand up to scrutiny if I ever got audited. Wish I'd known about this last year when I was trying to figure all this out manually.

Another option worth considering if you get stuck with the IRS on this issue: https://claimyr.com helped me actually reach a human at the IRS when I had questions about my ticket reselling business that weren't clearly answered online. I spent DAYS trying to get through the normal IRS phone system with no luck, but Claimyr got me connected with an agent in about 20 minutes. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that unsold tickets that expired can be treated as inventory losses as long as you're operating as a legitimate business with profit intent. Getting that verbal confirmation from an actual IRS employee gave me peace of mind when filing.

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway because I was getting nowhere with the IRS on my own. Within 30 minutes of using the service, I was talking to an actual IRS representative who answered my specific questions about writing off my unused concert tickets. The agent confirmed exactly what others here said - since I was operating as a business (even a small one), the expired tickets were considered inventory with zero value and could be fully deducted against my ticket reselling profits. Saved me hours of frustration and gave me a definitive answer directly from the source.

Something important that nobody's mentioned yet - make sure you're tracking your other expenses too! When I did ticket reselling, I was able to deduct: - Fees paid to StubHub/other platforms - Mileage driving to pick up physical tickets - A portion of my internet bill (used for researching/selling) - Printer ink/paper for printing tickets - Shipping costs if you mail physical tickets All these little expenses add up and can help offset your profits along with the ticket losses.

Has anyone here actually been audited for this kind of side business? I've been reselling tickets for about 2 years now and I'm always stressed about doing it wrong. I have some unsold tickets from last year I never claimed as a loss because I was worried about raising red flags.

I've been doing ticket reselling for about 3 years now and can confirm that yes, you can absolutely write off those unused Taylor Swift tickets! The key is that you purchased them with business intent (to resell for profit), not for personal entertainment. When tickets expire unused, they become worthless inventory - just like any other business that has unsold products. The IRS recognizes this as a legitimate business loss. I've written off several expired tickets over the years, including some expensive ones like yours. A few tips from my experience: - Keep screenshots of your original purchase confirmation - Save any evidence you tried to sell them (listings, social media posts, etc.) - Document the event date to prove they're now worthless - Make sure you're consistent in treating this as a business activity The fact that you're already thinking about proper documentation shows you're on the right track. Don't let those tickets go to waste tax-wise - claim that loss!

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!