Quick answer (read this first): What this article addresses: What happens when a prediction market tax position filed in a prior year gets challenged or recharacterized, including Section 1256 treatment. […]
Quick answer (read this first): What this article addresses: Can prediction market activity qualify as a trade or business, and what changes if it does. Trade-or-business status is possible, and […]
Patrick Camuso was included on the Forbes 2026 Best-in-State Top CPAs list, marking a second consecutive year of recognition. That recognition comes at a time when the digital asset landscape […]
Quick answer (read this first): What HIP-4 is: Hyperliquid’s outcome market framework, announced in September 2025, live on testnet in February 2026, and now rolling out on mainnet in stages, […]
Quick answer (read this first): When correction is required: When reported gains or losses were materially wrong due to missing acquisitions, misclassified transfers, unrecognized income events, or software errors and […]
Quick answer (read this first): What crypto tax software does: It calculates gains and losses from the transaction data imported into it. It applies an accounting method to whatever inventory […]
Quick answer (read this first): The short answer: No, you can’t fix crypto taxes without addressing prior years?. Cost basis is cumulative. Every year’s ending inventory becomes the following year’s […]
Wired published a piece examining the tax reporting challenges facing prediction market traders following the explosive growth of platforms like Kalshi and Polymarket. Patrick Camuso, CPA was quoted in the […]
Accounting Today published a piece on March 23, 2026 examining the 1099-DA reporting challenges CPAs and their clients are navigating in its first active tax season. Patrick Camuso, CPA was […]
Quick answer (read this first): The short answer: It depends on how your prediction market activity is characterized, on your capacity as a taxpayer, and on how each position ended, […]
