Quick Answer The short answer: A professional prediction-market firm generally cannot establish its accounting or tax reporting by adding together the profit and loss reported by Kalshi, Polymarket, and other […]
Quick Answer Prediction market contracts should not be assigned a single federal income tax treatment merely because they trade through the same platform or use similar payout structures. Contracts referencing […]
Quick Answer The short answer: Section 1402 applies its own rules to the income, gains, and losses involved, and published Treasury or IRS guidance has not specifically addressed how those […]
Quick Answer Prediction market maker rebates, liquidity incentives, volume-based rewards, fee credits, interest, and other platform payments do not all have one federal tax treatment. The terminology used by an […]
Quick Answer There is no general profit, trading-volume, or account-size threshold that requires a prediction-market trader or trading firm to obtain a written tax opinion. The need for separate prediction […]
Quick Answer A prediction-market trader or trading firm can finish the year with a reliable estimate of economic profit and still be materially unprepared to file a tax return. Platform […]
Quick Answer The short answer: There is no separate federal tax treatment that applies merely because a participant is described as a prediction-market market maker, professional trader, liquidity provider, or […]
Quick Answer Professional market making on Kalshi can present a substantially more complicated federal tax and accounting profile than occasional prediction-market trading. Two-sided quoting, automated execution, short holding periods, substantial […]
Quick Answer A CPA advising a professional prediction-market trading firm may need to do considerably more than transfer annual platform totals onto a tax return. Depending on the operation, the […]
Quick Answer Camuso CPA PLLC has submitted a formal recommendation to the U.S. Department of the Treasury and Internal Revenue Service requesting coordinated federal tax guidance for prediction-market event contracts […]
