Guides
Tax treatments tax guides
Precise, sourced explanations of how Polymarket, Kalshi and Hyperliquid activity is reported, with worked examples.
Tax treatments·8 min read
Gambling vs Capital Gains for Event Contracts: How the Tax Treatment Changes What You Owe
Are prediction markets gambling or capital gains for taxes? Compare all four treatments with 2026 examples for winners, break-even traders and losers.
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Tax treatments·8 min read
Section 1256 and Prediction Markets: Does 60/40 Apply to Kalshi Event Contracts?
Can Kalshi or Polymarket US event contracts get Section 1256 60/40 treatment? The statute, the arguments for and against, Form 6781, and the audit risk.
Updated Oct 22, 2026
Tax treatments·8 min read
The 2026 Gambling Loss 90% Limit: What It Means for Prediction-Market Traders
From 2026 only 90% of gambling losses are deductible, even if you broke even. How the rule works, worked examples, and what it means for event contracts.
Updated Oct 22, 2026