CPA for Professional Traders in Prediction Markets, Perpetual Contracts & Digital Assets

Recognized by Forbes as a Best-in-State Top CPA in 2025 and 2026

Featured in Forbes for "Leading the Charge on Crypto Accounting": Read the Forbes Feature

Recognized by Forbes as a Best-In-State Top CPA in 2025 and 2026. Featured in Forbes: “Leading the Charge on Crypto-Accounting”

Camuso CPA provides tax and accounting for professional traders across prediction markets, perpetual contracts, and digital assets.

As Seen In:

Federal & Global

Published Research

Prediction Market Event Contracts: A Tax Classification Analysis

Co-authored with the former head of the IRS Office of Digital Assets and co-author of the §6045 digital asset broker reporting regulations. A federal tax classification analysis examining how prediction market event contracts may be treated under §165(d) wagering rules, §1256 contract treatment, and general capital or ordinary income rules. Published in Tax Notes Federal and Tax Notes Global.

Read in Tax Notes → Read All Publications →

Accounting and Tax for Professional Traders

Professional traders can operate highly automated strategies, provide liquidity across multiple venues, process substantial transaction volume, maintain material open positions, and generate fees, rebates, funding payments, or other trading-related activity.

As the operation grows, the accounting and tax requirements can extend well beyond ordinary investment reporting. Different venues may produce materially different source records, and the trader may need transaction-level accounting, cash and position reconciliation, subledger and general-ledger reporting, period-end close, and reporting for the individual return and, where one exists, an entity across prediction markets, perpetual futures, and digital-asset activity.

The federal tax issues can be equally significant. Relevant questions may include instrument characterization, transaction timing, trade-or-business status, entity and partner reporting, available elections, state filing obligations, and the treatment of fees, incentives, funding payments, and other trading activity.

Camuso CPA provides specialized accounting and tax services for professional traders. Our engagements may involve historical transaction reconstruction, trading subledgers, general-ledger integration, recurring financial reporting, tax position analysis, tax planning, and entity and owner compliance. A trader can engage us for accounting, tax advisory, or integrated ongoing services, including work coordinated with an existing accountant or outside advisers.

Our Process for Professional Traders

Step 1: Trading Activity, Entity & Records Review

We review the trader’s trading activity, venues, strategies, transaction volume, entity and ownership structure, existing books, prior filings, and current reporting process. This establishes the scope of the accounting, tax, and compliance work and identifies any immediate filing, election, or reporting issues.

Step 2: Accounting, Reconciliation & Period-End Reporting

We address the accounting required to support the trader’s trading activity, including transaction-level records, reconciliation, subledger and general-ledger reporting, and period-end close where applicable. The scope is based on the trader’s actual trading model, venues, transaction volume, and existing accounting process.

Step 3: Federal Tax Analysis, Planning & Compliance

We evaluate the federal tax treatment of the trader’s trading activity and related entity and owner considerations. Depending on the engagement, this may include written position analysis, estimated-tax planning, available elections, partnership and owner reporting, state filing obligations, and preparation of federal and state tax returns.

Step 4: Ongoing Accounting & Advisory

For recurring engagements, Camuso CPA can maintain the accounting and reporting process throughout the year, including reconciliations, period-end close, financial reporting, tax projections, book-to-tax workpapers, and planning as the trader adds venues, strategies, owners, or other business activity.

Prefer to book a time directly?

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Prefer to reach us directly? Email info@camusocpa.com or call (704) 249-3179.

Who We Help: Professional Traders, Solo Market Makers & Owner-Operated Trading Businesses

Camuso CPA advises professional traders who file as individuals and trade their own capital, including solo market makers and owner-operated trading businesses, across prediction markets, perpetual futures, digital assets, and related derivatives.

A proprietary firm, a trading partnership, or a market-making business with members is served on the trading firm page.

Accounting & Tax for Professional Individual Traders

Camuso CPA advises professional individual traders whose transaction volume, trading strategies, or tax circumstances require specialized support. These clients may trade through personal accounts, single-member LLCs, or other owner-operated arrangements across prediction markets, perpetual futures, digital assets, and related derivatives.

Our work includes evaluating trader-versus-investor tax treatment, trade-or-business considerations, applicable elections, entity structuring, trading activity reconciliation, historical accounting, and federal and state tax compliance. The tax treatment depends on the taxpayer’s facts and the instruments traded; high transaction volume alone does not establish a particular tax classification or election eligibility.

We help traders establish reliable records, analyze material tax positions, and plan for the consequences of substantial trading activity.

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Professional Trader Accounting & Tax Services

Camuso CPA provides accounting, tax advisory, and compliance services for professional traders. Our work covers historical reconstruction, ongoing financial reporting, and federal tax analysis across prediction markets, digital assets, perpetual futures, and related derivatives.

Trading Activity Reconstruction & Reconciliation

Historical and ongoing reconciliation of trading activity across venues, cash accounts, wallets, and internal systems, including positions, fees, funding payments, rebates, incentives, transfers, and other activity required to support the books.

Subledger & General-Ledger Accounting

Transaction-level subledger accounting and general-ledger integration for high-volume trading activity, including account mapping, venue-level records, open-position reporting, and support for the trader’s books.

Ongoing Accounting & Period-End Close

Recurring monthly or quarterly accounting, reconciliations, period-end close, financial reporting, year-end workpapers, and ongoing maintenance of the trader’s trading-accounting records.

Financial & Management Reporting

Period-end financial reporting and accounting workpapers for professional trading operations, with coordination with outside advisers when required.

Tax Analysis & Written Positions

Technical federal tax analysis for material or uncertain trading positions, including prediction-market contracts, perpetual futures, digital assets, and related derivatives, with written support where appropriate.

Tax Planning, Elections & Estimated Taxes

Tax planning for professional traders, including estimated-tax projections, available elections, trader-versus-investor treatment, changes in trading activity, and other planning matters arising during the year.

Individual Return & State Compliance

Federal and state tax compliance for the individual trader, including the individual return, estimated-tax payments, book-to-tax workpapers, and applicable state filings.

Historical Accounting Cleanup & Delinquent Filings

Reconstruction of prior-period trading activity, correction of incomplete or unreconciled books, preparation of supporting tax workpapers, and completion of delinquent individual filings where required.

Why Professional Traders Work With Camuso CPA

A professional trader can generate millions of transactions across multiple venues. The resulting accounting requirements can include detailed transaction reconciliation, trading subledgers, open-position reporting, general-ledger integration, and recurring period-end close. Tax reporting introduces additional questions involving the instruments traded, taxpayer capacity and the treatment of trading activity.

Camuso CPA has developed specialized experience working directly with professional traders and market makers on these issues. Our engagements include reconstructing historical trading records, establishing accounting processes, analyzing material federal tax positions, and coordinating the resulting financial records with the individual return and, where an entity exists, that entity’s compliance.

Patrick Camuso’s research on prediction-market event contracts has been published in Tax Notes, examining competing federal tax frameworks and the implications for professional trading activity. That technical research complements our client work on transaction-level accounting, financial reporting, and tax-position implementation.

Trading Firm Accounting & Tax

Case Study

Quantitative Prediction-Market Trading Firm — Accounting, Federal Tax Analysis and Partnership Compliance

Client Type Multi-Member Trading Firm

Activity Automated Market Making

Scale Millions of Fills

Scope Accounting, Tax & Partnership Compliance

The Problem

This example is a multi-member firm. An individual trader starts from the same records. The firm had scaled its prediction-market market-making activity while its accounting and tax reporting had fallen behind the trading operation. Nearly two years of high-volume activity had not been incorporated into the books, partnership filings remained outstanding, and material federal tax positions affecting the firm's prediction-market activity had not been formally documented.

What We Did

Camuso CPA reconstructed the historical trading activity, developed transaction-level subledger accounting for the firm's prediction-market activity, and integrated the resulting records into the general ledger. We also analyzed and documented material federal tax positions, prepared the related book-to-tax workpapers, and completed the required partnership tax compliance.

The Outcome

The historical trading activity was incorporated into the firm's books, outstanding partnership reporting was brought current, and the accounting and tax positions were implemented within a consistent reporting process. Camuso CPA now provides ongoing accounting together with quarterly tax projections, provisions, and year-end tax support. Partnership compliance for a firm stays on the trading firm page.

Work With A Professional Trader CPA

Professional Trader CPA FAQ

What does a professional trader CPA do?

A professional trader CPA works with individuals who trade their own capital. The work covers the accounting, tax, and reporting requirements arising from high-volume or complex trading activity.

Depending on the trader, that can include transaction reconstruction, reconciliation, subledger and general-ledger accounting, period-end close, financial reporting, federal tax analysis, planning, book-to-tax workpapers, and tax compliance for the individual return.

What types of professional traders does Camuso CPA work with?

Camuso CPA works with professional traders, solo market makers, quantitative and algorithmic traders, and owner-operated trading businesses. A proprietary firm or a trading partnership is served on the trading firm page.

We advise traders operating across prediction markets, perpetual futures, digital assets, and related derivatives. We assess each engagement based on the actual trading activity, accounting requirements, entity structure, and tax matters involved.

Does Camuso CPA handle both accounting and tax for professional traders?

Yes. Camuso CPA provides trading accounting, reconciliation, subledger and general-ledger reporting, period-end close, technical federal tax analysis, planning, and entity tax compliance.

A trader can engage us for accounting alone, tax advisory alone, or an integrated engagement. We can also coordinate with an existing accountant, internal finance team, tax adviser, or legal counsel when specialized trading expertise is needed.

Why do high-volume professional traders need specialized accounting?

A professional trader can generate substantial transaction volume, maintain open positions across multiple venues, receive rebates, incentives, funding payments, and other trading-related amounts, and operate automated strategies with relatively small teams.

The accounting needs are therefore driven by the activity—not headcount. Summary platform or broker reports may not provide all of the detail required to reconcile the trading activity, maintain the books, complete period-end close, or support year-end tax workpapers.

How are prediction markets, perpetual futures, and crypto derivatives taxed for a professional trader?

There is no single federal tax treatment that applies to every instrument or professional trader.

The analysis can depend on the instruments traded, contract terms, transaction mechanics, taxpayer capacity, entity structure, and other relevant facts. Depending on the activity, issues may include ordinary versus capital treatment, §1256, wagering rules, trade-or-business treatment, hedging, available elections, entity and owner reporting, and other federal tax provisions.

Material or uncertain positions may warrant formal written analysis before they are implemented in the returns.

Should a professional trader consider a Section 475(f) election?

Potentially, but the analysis is fact-specific.

Whether an election is available or advisable depends on the taxpayer’s activity, the instruments involved, whether the applicable trade-or-business requirements are satisfied, the consequences of the election, and the relevant filing deadlines.

A professional trader should not assume that §475(f) applies uniformly across all trading activity or instrument types.

How do entity structure and ownership affect a trader’s tax reporting?

Entity classification and ownership can affect federal and state reporting, partner or shareholder allocations, estimated taxes, state filing obligations, and other tax considerations.

A trader who has an entity, multiple owners, mid-year ownership changes, outside capital, or activity across several jurisdictions may require additional accounting and tax analysis beyond the treatment of the trading instruments themselves.

Can Camuso CPA work with our existing attorneys, auditor, fund administrator, or other service providers?

Yes.

Camuso CPA can provide specialized professional-trader accounting and tax services while coordinating with existing regulatory counsel, fund counsel, auditors, administrators, brokers, and other professional advisers.

The appropriate division of responsibility depends on the trader’s existing systems, service-provider relationships, and reporting requirements.

When should a professional trader engage a specialized CPA?

Ideally before transaction volume, additional venues, new instruments, ownership changes, outside capital, or reporting deadlines make the accounting and tax issues more difficult to address.

Common triggers include beginning market-making activity, adding automated strategies, expanding into prediction markets or perpetual futures, forming a new trading entity, adding partners, preparing for audit or diligence, establishing recurring financial reporting, or approaching year-end without reconciled books.

Can Camuso CPA help if our books or prior filings are behind?

Yes. Where trading activity has not been incorporated into the books or prior filings remain outstanding, Camuso CPA can work from available source records to reconstruct the relevant activity, reconcile the accounting records, prepare the required book-to-tax workpapers, and complete the related tax compliance. The appropriate scope depends on the quality of the available records, the periods involved, and the issues identified during the review.