Quick answer The core problem: Prediction market platforms produce transaction-level data not designed for accounting or tax purposes. Who this affects: Retail traders reconciling year-end positions, algorithmic traders and market […]
My co-authored article with Sulolit Mukherjee has been published in Tax Notes Federal: “Prediction Market Event Contracts: A Tax Classification Analysis.” This prediction market tax analysis examines the three competing […]
Quick answer (read this first): What Robinhood provides: An Event Contracts Annual Statement. Not a 1099-B or a 1099-DA. Robinhood explicitly states it is not a substitute tax reporting form. […]
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. The answer depends on the […]
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 contract framework, announced in September 2025 and live on testnet as of February 2026, introduces binary prediction market instruments directly […]
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 […]
Quick answer (read this first): The short answer: It depends entirely on how your prediction market activity is characterized, and the rules differ so significantly across frameworks. Why prediction market […]
Quick answer (read this first): The short answer: It depends and the IRS has not told you which answer applies. What the question actually means: Whether prediction market profits are […]
