Attention Swifties! Prepare for Taxes
Audio version available here:
Length: approx. 1 min. 40 sec.
There is no denying the power of Taylor Swift and her loyal horde of fans. The “Eras” tour is on track to be the highest-grossing music tour of all time, beating out Elton John’s “Farewell Yellow Brick Road”. However, an unforeseen factor of this success came in the form of an unending demand of Swifties vying for a chance to see this historic tour in person, and the ticket purchasing fiasco with Ticketmaster.
With these circumstances, reselling became paramount in order for fans to get a ticket. Demand was so high that the average resale ticket went for over $2,000, giving any Swifties with extra tickets a nice profit. What those fans may not have realized is that due to the 2023 low threshold for business transactions via third-party apps like Venmo and eBay, they could be liable for significant taxes on those resales. Previously, the threshold for issuing a 1099-K was more than 200 transactions worth $20,000. Now, it is down to just $600 from a single transaction. This means that the average $2,000 ticket resale is well over the threshold, putting Swifties at risk of IRS scrutiny if these sales are not properly recorded on their tax returns.
Because of this, it is vital to prepare your taxes early and accurately. For Swifties who are not yet well-versed in the realm of tax planning and filing, trust our experts at XQ CPA to keep you in compliance. Reach out and schedule a preliminary meeting on our website or by calling our phone number below. We would love to help you!
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