Detroit Lions’ Postseason Tickets: A Hot Commodity, But Tax Pitfalls Await
The Detroit Lions have certainly become a hot ticket this postseason, but if you’re cashing in by reselling tickets for astronomical prices, you might want to brace for a surprise come tax time. With their first playoff game at Ford Field just around the corner, tickets are fetching sky-high prices — some even reaching $12,000 for prime seats. However, the lucrative resale market could trigger an unexpected tax headache for those profiting from ticket sales.
Reselling NFL tickets above face value is taxable, and starting in 2025, changes to IRS reporting rules mean many sellers will receive a 1099-K form, which will report their ticket sales to both the seller and the IRS. This will likely increase scrutiny on ticket resellers, especially as resale prices for Detroit Lions playoff tickets climb.
The New Rules: More Sellers Will Get Hit with 1099-Ks in 2025
Historically, reselling tickets has always been considered taxable income, but starting in 2025, the IRS will require more individuals to report their sales. If your total ticket sales surpass $2,500 for the year, you will receive a 1099-K form from the payment processor. This threshold is significantly lower than previous limits, which used to trigger reporting at $5,000.
For instance, tickets for the January 2025 divisional round at Ford Field are already selling for high prices — $1,500 for decent seats and up to $12,000 for premium locations. As the Detroit Lions surge in popularity, with playoff games becoming some of the highest-selling on platforms like StubHub, it’s clear that resellers stand to make big profits, but those profits will be subject to tax.
Lions’ Playoff Surge: The Best-Selling Divisional Round Game
According to StubHub, the Detroit Lions’ playoff game is the best-selling divisional round game, outpacing even the Kansas City Chiefs game by 85% in early January. With an average ticket price of $1,000, the Lions are setting a high bar for ticket resale. For comparison, the Dallas Cowboys were the only team to outsell the Lions during the regular season, with the Lions boasting the second-highest average ticket price of $390 for their games in 2024.
If the Lions continue their postseason run, StubHub predicts even higher ticket prices as demand increases, especially for potential matchups in the NFC Championship. Fans are already purchasing tickets for that potential game, despite the matchup being unconfirmed.
The 1099-K: When Reselling Triggers Tax Forms
For those selling tickets for more than they paid, expect to see more 1099-K forms in the near future. In 2024, the IRS required 1099-K forms for any transactions exceeding $5,000. But in 2025, the threshold drops to $2,500 — meaning more resellers will get caught in the net. These forms will report gross sales but not necessarily taxable income, as taxes are only due on the profit made from reselling tickets, not the total sale amount.
For example, a seller making $1,000 in profit would owe approximately $220 in federal taxes if they’re in the 22% tax bracket, plus an additional $42.50 for Michigan’s state income tax. The exact tax owed depends on individual circumstances, such as total income.
A Year of Tax Changes and Reseller Compliance
The IRS has been gradually rolling out changes to its reporting system, initially lowering the threshold for reporting to $600 in 2022. However, after backlash and delays, they pushed back the new rule, keeping the $20,000 threshold for 2023. But starting in 2025, if your gross sales reach $2,500 in a year, you will be required to report those earnings. Katharina Reekmans, a tax expert at TurboTax, emphasized that even if no 1099-K is issued, profits from ticket resales must still be reported on your tax return.
Tax Pitfalls for Resellers: Don’t Miss These Key Points
For anyone who resells tickets, keeping track of your costs and profits is essential. You can’t deduct the loss on a ticket sold below face value, but if you’re profiting, you must report it. Mark Steber, chief tax officer at Jackson Hewitt, warns that the IRS could easily spot unreported sales, and failure to report taxable gains could result in penalties.
For occasional resellers, the risk of self-employment taxes is lower unless you’re consistently in the ticket resale business and your net earnings exceed $400. However, even casual sales can trigger a 1099-K, especially as the rules tighten in 2025.
In conclusion, while it’s tempting to profit from reselling those high-demand Detroit Lions tickets, remember that the IRS is stepping up its oversight. Make sure you document all sales and consult a tax expert if necessary to avoid any surprises when tax season rolls around.
