gypman wrote:

- quote -

I don't think IRS has the resources nor the time.
- quote -

Always good to see again one of the old "gang".

ChEAr$,
Harlan Lunsford, EA n LA

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gypman <ggreen1[at]san.rr.com> wrote:

- quote -

There are millions of transactions on e-Bay, and they don't
have your SS#, so they'd be rather difficult to monitor.

Seth

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Wow, I didn't know such a simple thing could be so
controversial! But silly me, I should know that nothing
concerning taxes is simple. Overall I did lose money. Even
if I sold the ticket for what I paid, there are fees and a
percentage charged by e-bay. So maybe I should forget the
whole thing. (But does the IRS monitor transactions on
e-bay?)

Thanks for all the input.

george in rainy san diego
former member of the old tax gang on Prodigy

btw, I am not a scalper in CA, since I did not sell the
tickets at the ball park. The padres have even set up a web
auction for season ticket holders to sell tickets. But I
was never able to sell any there. e-bay is the way.

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Harlan Lunsford <hnslunsford[at]bellsouth.net> wrote:
- quote -

Well, clearly FMV differed, because that's what he sold them
for. So if the total price were allocated proportional to
FMV (selling price), he'd owe no taxes.

Cost is one large amount, for a book of tickets with
different prices printed on them (that don't sum to the
total amount paid).

Seth

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Harlan Lunsford <hnslunsford[at]bellsouth.net> wrote:
- quote -

See below.

- quote -

The tickets for date X didn't sell. He expects the tickets
for date Y (after X) to sell at a premium, so he bundles
them with the tickets for X and sells the package.
Including the (rather worthless) tickets for X increases his
basis, reducing or eliminating his profit. However, that
might be considered "form over substance", if the X tickets
are truly worthless.

Which brings to mind another situation:

Somebody buys a limited edition book for $100, and a reading
copy for $25. A year later, the limited edition is worth
$200, and the reading copy $5. If he sells them separately,
he pays tax on $100 (out of $205 proceeds). If he sells
them together for $200, he pays tax on $75 (out of $200
proceeds), making him better off if his tax bracket exceeds
20%.

Seth

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Seth Breidbart wrote:
- quote -

well of course. After all, weren't all tickets worth the
same, cost and fmv?

Happy New ChEAr$,
Harlan Lunsford

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Seth Breidbart wrote:
- quote -

well, he*k! cost is cost. so cost of x and y is two times
average cost of tickets. (scratching my head at your
question now.)

- quote -

??

- quote -

Simple answer here. Not subdivided, hence
selling price minus cost = gain.

Happy New ChEAr$,
Harlan Lunsford

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Harlan Lunsford <hnslunsford[at]bellsouth.net> wrote:

- quote -

Suppose after being unable to sell ticket X, but knowing
that ticket Y would likely sell at a premium, he offered a
package "X+Y". Would he be able to avoid (some of) the gain
on Y by including the cost of X that way?

Does it matter if they were sold together before or after
the date on X?

(Suppose he sold the entire season ticket in one
transaction. Does this affect your answer?)

Seth

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Harlan Lunsford <hnslunsford[at]bellsouth.net> wrote:
- quote -

Even if the face price for various tickets were different?

Seth

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Nan Eklund wrote:

- quote -

Yep. Clients, like young children,

say the darndest things. (Art Linklater I think I remember.)

Merry Christmas!
Harlan Lunsford

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And a Merry Christmas to you, too.

But - if that were MY client, he'd hate me.
And I'd hate him for mentioning it!

Nan, EA in LA

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Seth Breidbart wrote:

- quote -

I think any IRS auditor/examiner worth his salt would allocate
on the original cost divided by number of tickets.

Merry Christmas, Y'all.
Harlan Lunsford, EA n LA

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Dick Adams wrote:

- quote -

"Scalping" is only illegal if on the premises, the
last time I checked in CA. He may still need a business
license or a resale license, though.

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- quote -

If it were a single transaction (selling 20 tickets at
once), then I'd agree. But if he sold them individually, I
wouldn't: each sale is separate.

Another question: does his cost have to be allocated based
on the nominal payment, or can he allocate proportional to
fmv?

Seth

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- quote -

"like" but not securities on who's sale gains AND losses are
reported.

- quote -

Well, they started off being season tickets, bought as a
whole. But he "subdivided", or retailed them, having
gains/losses on each one. Which makes them each separate
sales.

And each sale should be reported, except where loss is
supposed to be indicated on Schedule D, a zero should be
placed in that block with an asterisk with note below
"Personal loss not deductible."

Merry Christmas,
Harlan Lunsford

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Seth Breidbart wrote:
- quote -

None taxable in your examples, of course. I was kinda
thinking of this client one year who when prodded for any
other income, and I asked about selling any thing, he told
me about fixing up a car and selling it. Facts of the case
were something like he bought it for 3000, put 2000 in parts
in it plus his sweat equity and sold it for 7000. Presto!
2000 gain which I informed him was taxable. He shouted
"OUCH!. But that was mainly because his wife kicked him
under the table.

Merry Christmas, Y'all.
Harlan Lunsford

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"Paul" <TaxMan[at]negia.net> wrote:
- quote -

Paul,

People invest in the San Diego Padres?

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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Harlan Lunsford wrote:
- quote -

FMV has nothing to do with it (unless you obtained the car
by gift). You only have a gain if the selling price was more
than what you paid for the car.

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- quote -

My point was that to the best of my knowledge, there's
nothing taxable UNLESS you manage to get over $20,000 for
the car.

Personal property. Taxable on a gain, nada deductible on a loss.

Nan, EA in LA

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Here's my 5› worth.

If this guy who buys season tickets for the San Diego Padres
wants to write off unused tickets, he is going to need a
scalper's license (or whatever they call it in KaliFornYa)
so that he will have a business purpose to justify the loss
and the cost of that license may be more than the loss he is
trying to write off. And since he has only one set of
tickets to scalp, almost every auditor I can imagine will
call it a hobby in spite of the license.

Dick

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