Last year, a significant portion of my income was from buying and reselling concert tickets. I would buy the tickets at one price and sell for a higher price. Would this income be recorded on Schedule C or Schedule D?

Question

AI accountant’s answer:

Income from buying and reselling concert tickets is generally considered part of a business activity, as you are engaged in buying tickets for resale to realize a profit. You should report this income and any related expenses on Schedule C (Form 1040), Profit or Loss from Business. By filing Schedule C, you can also deduct any business-related expenses, which may lower your tax liability. Schedule D is typically used to report gains and losses from the sale of capital assets, like stocks and real estate, rather than business income.

Comment from reviewer

Judah Broussard, EA, JD

I agree with the assumption that seems to underlie this question, and it seems to make the response right: the client appears to be regularly and continuously engaging in the activity with the intention of making a profit. In other words, this seems to be a bona fide business. Could this activity be possibly be reported on Schedule D. Yes, but not under the apparent facts established in this question. Schedule C is right for this scenario.

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