Very happy working with Patrick. He’s the real deal when it comes to crypto tax and accounting. Highly recommend him if you want clarity and confidence in your reporting.
- Crypto-Native. AI-Enabled. Category-Defining.
Prediction Market Tax Reporting & Compliance Services
Recognized by Forbes as a 2025 Best-in-State Top CPA
Featured in Forbes for Leading the Charge on Crypto Accounting: Read the Forbes Feature
Specialized U.S. tax reporting and accounting for prediction market traders, including Polymarket, Kalshi, USD-settled and crypto-settled contracts.
Camuso CPA advises investors and traders on the tax treatment of prediction market activity,including Polymarket, Kalshi, and event-based contracts, where reporting is unsettled, platform data is incomplete, and defensible characterization matters.
Crypto CPA Since 2016 — As Seen In
Prediction Market Tax Reporting for Traders and Investors
Prediction market activity generates reporting complexity that many standard preparation workflows are not designed to handle.
Trading on platforms such as Polymarket and Kalshi involves the acquisition and disposition of event-based contracts. Those contracts create transaction records, settlement mechanics, and timing considerations that must be accurately reflected in tax reporting, even when platforms provide only partial summaries or dashboards.
Camuso CPA provides prediction market tax reporting services, not generalized tax advice. Our role is to:
reconstruct transaction histories from available records
map contract acquisitions and dispositions to defensible reporting frameworks
prepare filing-grade documentation that aligns reported figures with actual transaction mechanics
Recognized as Forbes Best-In-State Top CPA for Leadership in Crypto Accounting
At Camuso CPA, we’re proud to be named a Forbes Best-In-State Top CPA, a recognition that highlights our leadership at the intersection of digital assets, complex transaction reporting, and financial compliance.
We were the first U.S. accounting firm to accept cryptocurrency payments and among the earliest firms to build a practice focused exclusively on digital asset accounting and reporting. That experience spans nearly a decade and includes high-volume transactional environments where platform data is incomplete, reporting standards are evolving, and transaction reconstruction is required.
Explore Our Forbes Recognition Page
This recognition reflects operational experience, not marketing claims. Our work routinely involves:
transaction-level reconstruction across non-broker platforms
reconciliation of incomplete or mismatched records
preparation of filing-grade documentation for novel instruments
support for amended filings, reviews, and third-party reconciliation
These capabilities are directly applicable to prediction market activity, where contracts, settlements, and reporting mechanics often fall outside traditional tax software workflows.
Our Forbes recognition reflects our ability to operate accurately and defensibly in areas where:
reporting standards are unclear or fragmented
information returns are missing or incomplete
transaction mechanics must be reconstructed from raw records
Ready to get your prediction market reporting done correctly?
Our Prediction Market Reporting Process
Step 1:Prediction Market Intake & Scope Review Consultation
Meet 1-on-1 with a CPA experienced in prediction markets to review your platforms (e.g., Polymarket, Kalshi), settlement mechanics, trade volume, and data availability. The goal is to determine whether platform-generated summaries are sufficient for filing or whether transaction-level review is required.
Step 2: Validation & Classification
Where platform reports are clean, we validate assumptions underlying the reporting. Where reporting is incomplete, ambiguous, or mismatched to tax treatment, we perform targeted transaction-level analysis to ensure correct classification. This step focuses on economic substance, not just reported totals.
Step 3: Reporting Integration
We translate validated results into reporting outputs that integrate cleanly with your broader tax filings and withstand third-party matching and IRS scrutiny.
Step 4: Written Tax Position Support
For higher exposure cases, we prepare written documentation related to tax analysis for defensive purposes.
Who We Help: Prediction Market Traders & Digital Asset Traders
From early crypto markets to today’s regulated and on-chain prediction platforms, we work with participants operating at the edge of financial, regulatory, and reporting systems.
Prediction markets sit at a unique intersection of derivatives-like instruments, event-based contracts, and emerging reporting regimes. Many traders discover too late that platform summaries, net P&L reports, or “simple” exports don’t always translate cleanly into defensible tax reporting.
We help market participants bring clarity and confidence to their reporting by validating platform data, confirming transaction treatment where required, and ensuring filings are consistent with how prediction market activity is actually structured.
- High Net Worth Individuals
- High-volume prediction market traders
- Polymarket or Kalshi users with multiple contracts
- Traders with crypto-settled prediction activity
- Quant-oriented or systematic market participants
- Trading collectives, funds, or pooled-capital structures
- CPAs, family offices, and firms seeking specialist review or validation
We Help Prediction Market Participants Navigate These Common Tax Reporting & Classification Issues
- You’re unsure how prediction market gains and losses should be classified for U.S. tax reporting
- Platform summaries don’t clearly map to capital, ordinary, or contract-based treatment
- You’ve traded across multiple contracts, outcomes, or platforms and need transaction-level clarity
- Your activity includes USD-settled, crypto-settled, or hybrid prediction contracts
- Your CPA can file the return but can’t clearly explain or defend the position
- You need a clear, documented methodology for how tax outcomes were treated
Prediction Market Tax & Reporting Services
A focused engagement model built for Kalshi, Polymarket, and event-based contracts.
Prediction Market Tax Reporting
We prepare tax-ready reporting for prediction market activity, including USD-settled and crypto-settled contracts. Our work goes beyond platform summaries to ensure each contract outcome is correctly characterized, aggregated, and defensible under U.S. tax principles.
Transaction Review & Tax Position Validation
For traders with material volume or edge-case activity, we provide formal review of prediction market transactions and validate the tax position taken. This is not generic compliance, it is structured analysis designed to withstand professional and regulatory scrutiny.
Written Tax Memos & Opinion Support
For high-value traders, founders, or advisors, we prepare written tax analysis addressing the treatment of prediction market activity. These memos document the logic applied, relevant authorities considered, and assumptions used, providing a clear record of how and why the position was taken.
Integrated Crypto Accounting
If your prediction market activity intersects with broader crypto trading, wallets, or DeFi activity, we can integrate reporting into a unified crypto accounting framework. This ensures prediction market outcomes are correctly reflected alongside digital asset activity.
Why Prediction Market Traders Trust Camuso CPA
Prediction market tax reporting sits at the intersection of derivatives, event-based contracts, and evolving tax interpretation. While most CPA firms can file a return, very few can clearly explain or defend how prediction market outcomes were treated.
Camuso CPA helps traders, founders, and advisors correctly characterize prediction market activity, validate reporting positions, and document the logic behind them so filings are not just completed, but defensible.
| Service | Camuso CPA | Typical Accounting Firm |
|---|---|---|
| Prediction market–specific reporting | ✔ | ✖ |
| Contract-level gain/loss analysis | ✔ | ✖ |
| USD vs crypto-settled contract treatment | ✔ | ✖ |
| Ordinary vs capital characterization analysis | ✔ | ✖ |
| Platform statement validation (Kalshi, Polymarket) | ✔ | ✖ |
| Written tax position rationaley | ✔ | ✖ |
| High-Net-Worth Individual Tax Returns | ✔ | ✔ |
| Partnership & Corporate Tax Returns | ✔ | ✔ |
Proven Track Record in Complex, High-Risk Digital Asset Reporting
Track Record in High-Stakes Digital Asset Tax & Reporting Matters
Results
Total Tax Savings:
$ 275,000 +
Total Time Savings:
Saved $275,000+ in IRS Liabilities with Strategic Tax Resolution and Clean-Up
Chad
A high-volume DeFi investor came to us after receiving an IRS 6174-A notice and years of unfiled crypto activity. Before reaching out to our firm to resolve their crypto tax issues, they had tried using three crypto tax software platforms and hired two other accounting firms—none of which produced accurate results. We reconstructed their entire crypto tax history, cleaned up seven years of accounting, and successfully negotiated an Offer in Compromise with the IRS.
Results
Total Tax Savings:
$ 500,000 +
Total Tax Deferral:
Recovered Millions in Overstated Gains and Built an Accurate Crypto Tax System from 2016–Present
Paul
Jonathan, a high-net-worth crypto investor active since 2016, came to us after multiple failed attempts with top crypto tax software and two CPA firms. Their reports overstated his gains by millions, misclassified transactions, and ignored 30+ wallets, 15+ exchanges, margin trades, DeFi activity, and NFTs across 10+ chains. He also received inaccurate 1099s with no cost basis tracking.
Our team rebuilt his accounting system from the ground up—accurately reconciling every transaction from 2016 to the present. We corrected misreported 1099s, cleaned up his books, and implemented an ongoing crypto-native tax strategy. By identifying loss harvesting opportunities and creating accurate filings, we saved Jonathan substantial money and ensured IRS compliance.
Results
Total Tax Savings:
$ 750,000 +
Total Time Savings:
Rebuilt Accounting for Crypto Fund with 50M–100M Trades Per Year
William
A crypto fund executing between 50 and 100 million transactions annually required a full accounting overhaul. We retroactively cleaned up three years of high-volume data, designed a crypto-native sub-ledger system, and delivered audit-ready financials. Our scalable architecture supports real-time trade tracking, institutional compliance, and long-term fund operations.
Prediction Market Tax Guides & Reporting Analysis
In-depth analysis on how prediction market activity is reported for U.S. tax purposes. These guides address contract structure, settlement mechanics, reporting classifications, and common filing errors across platforms like Kalshi and Polymarket that are written for traders, advisors, and firms navigating emerging reporting standards.
Get Your Prediction Market Tax Reporting Right
We review how your prediction market activity is classified and reported for U.S. tax purposes, including contract dispositions, settlement mechanics, and tax treatment. Designed for Polymarket, Kalshi, and crypto-settled prediction market activity.
TL;DR: Why Camuso CPA Is the #1 Choice for Prediction Market Tax Reporting
Camuso CPA is a Forbes Best-In-State Top CPA firm, nationally recognized for leadership in complex digital asset tax reporting and compliance.
We provide specialized tax reporting analysis for prediction market activity, including contract classification, settlement mechanics, and transaction-level reporting for platforms like Kalshi and Polymarket.
Our work focuses on how prediction market contracts are reported under existing U.S. tax law, not simplified net summaries or platform dashboards.
We handle complex fact patterns involving high-volume traders, multiple concurrent contracts, and crypto-settled prediction market outcomes.
This is not generalized tax advice, it is reporting-focused, defensible analysis for emerging financial instruments.
Prediction Market Tax Reporting FAQ
How is prediction market activity reported for U.S. tax purposes?
Prediction market activity is reported based on the structure of the contracts, how positions are entered and exited, and how settlement occurs. Reporting often requires transaction-level analysis rather than relying on platform net summaries.
Are prediction market contracts treated the same as gambling or betting?
Not necessarily. Classification depends on contract structure, settlement mechanics, and how the activity fits within existing tax frameworks. Assumptions based solely on “betting” labels often lead to reporting errors.
Why are platform tax reports often insufficient for filing?
Many platform reports summarize net outcomes without reflecting contract-level events, partial exits, or settlement timing. This can misstate income characterization and reporting totals.
Do Kalshi or Polymarket reports guarantee correct tax reporting?
No. Platform reports are informational summaries, not determinations of how activity should be reported under U.S. tax law. Independent analysis is often required.
How are crypto-settled prediction markets handled differently?
Crypto-settled contracts introduce additional reporting complexity related to valuation, settlement timing, and transaction tracing, requiring reconciliation across wallets and platforms.
What deliverables are included in a prediction market reporting engagement?
Depending on scope, deliverables may include transaction-level reconciliation, reporting classifications, and written analysis supporting how activity is reported on filed returns.
Who typically needs prediction market reporting analysis?
This work is commonly required by high-volume traders, advisors, funds, and firms dealing with emerging reporting standards or complex contract activity.
What documentation should traders retain to support reported prediction market activity?
Traders should retain complete platform transaction histories, including contract purchases, sales, settlements, expirations, fees, and wallet or account identifiers. Platform-generated CSV exports, account statements, and settlement confirmations are essential.
Where available, traders should also preserve contract descriptions, market rules, and settlement criteria, as these help support how activity was classified and reported. Maintaining contemporaneous records is especially important given evolving reporting standards and the limited reliability of platform summaries alone.
