Reselling Concert Tickets: Understanding the Tax Implications

Can I Sell Concert Tickets in Canada?

Yes, selling concert tickets in Canada is legal, and in most provinces, you can even sell them for more than face value—a practice often referred to as "ticket scalping."

Scalping is allowed in every province except Quebec, which prohibits selling tickets for more than their original price. No matter where you live, however, if you make a profit, you are required to document the sale and pay taxes on the income.

Tickets can be sold through various channels, such as Craigslist, Kijiji, or to a friend directly. Many people also use platforms like Ticketmaster’s Verified Resale program, which ensures that tickets are authentic and makes tracking sales for tax purposes easier.

Do I Have to Pay Taxes When Selling Concert Tickets?

In Canada, taxes on concert ticket sales depend on why you’re selling them. If you bought tickets for personal use but need to sell them, you may not owe any taxes unless the resale meets specific conditions. However, if reselling tickets is part of a business or side hustle, you’re always required to pay taxes on the income you generate.

Selling Concert Tickets for Personal Use

If you bought tickets for personal use and resell them, whether you owe taxes depends on the profit you make from the sale. The Canada Revenue Agency (CRA) considers this to be a sale of personal-use property.

• For tax purposes, the CRA assigns an adjusted cost base (ACB) of $1,000 to personal property sold for less than $1,000. So, if you bought tickets for $400, your ACB is automatically set at $1,000.
• If you sell the tickets for less than $1,000, the CRA also considers your proceeds to be $1,000, meaning there’s no capital gain or loss to report.
• However, if you sell tickets for more than $1,000, you have to report the gain and pay taxes on it.

Here are examples to clarify:

• Example 1: You bought tickets for $500 and resell them for $2,000. The ACB is $1,000, and your proceeds are $2,000, resulting in a capital gain of $1,000, which you need to report.
• Example 2: You bought tickets for $600 and resell them for $1,500. The ACB is $1,000, and your proceeds are $1,500, resulting in a capital gain of $500.
• Example 3: You bought tickets for $500 and resell them for $999. Since both the ACB and proceeds are $1,000, you don't need to report any gain.

Selling Concert Tickets as a Side Hustle

If you regularly buy and sell concert tickets as a side business, you must report all the income from your sales.

• All income from ticket sales, minus your expenses (such as ticket costs, advertising, etc.), must be reported on Form T2125 for business or professional income.
• If your total income from ticket sales exceeds $30,000 in a calendar year, you may also need to register for GST/PST or HST. However, if you're using platforms like Ticketmaster or StubHub, they usually handle the tax for you.

What Tax Rate Applies to Concert Ticket Resales?

• Personal use: If you're selling tickets for personal use and make a profit, you’ll only be taxed on 50% of the capital gain. For example, if you made $1,000, only $500 is added to your taxable income.
• Side hustle: If ticket resale is a business, you’ll need to report all income from ticket sales, minus expenses. For instance, if you made $10,000 from ticket sales and spent $5,000 on buying tickets, you’ll add $5,000 to your taxable income.

In both cases, the gain is taxed at your marginal tax rate, which depends on your total income for the year.

Pros and Cons of Selling Concert Tickets

For Personal Use:

• Pros:
• You don’t need to report the gain unless the sale is over $1,000.
• Only 50% of the capital gain is taxed.
• Cons:
• You must report and pay taxes if the sale exceeds $1,000.

For Side Hustle:

• Pros:
• You can deduct business-related expenses.
• Cons:
• You’ll need to report all income and potentially register for GST/PST or HST if you hit the $30,000 mark.

By understanding the tax rules around concert ticket sales—whether for personal use or as part of a side business—you’ll be better equipped to navigate your ticket resales and report them correctly come tax season.

Key Takeaways:

• Whether you owe taxes on the sale of concert tickets depends on whether you bought them for personal use or to sell as a side hustle.
• For personal-use ticket sales, you only owe taxes if the sale price exceeds $1,000.
• For side-hustle ticket sales, you must report all income from resales minus your expenses.