CoinbaseHow to file

How to file Coinbase prediction market taxes, from the statements up

As of October 25, 2026, a Coinbase prediction-market year is rebuilt from Coinbase’s statements, not from a connection. Coinbase has published no export of prediction trades and its retail APIs list none. Kalshi’s API returns fills for the member that placed the order, which for a Coinbase trade is Coinbase Financial Markets, not the Coinbase customer. The steps below take the forms Coinbase lists, the daily statements, the app’s transaction lines and, for an account funded with USDC, the conversion rows.

By Owen Monagan, Founder & CEOUpdated October 25, 2026Facts as of October 25, 2026Four steps

Filing a Coinbase prediction-market year

Checked October 25, 2026

Official record: The daily statement, which in-app history can briefly lag
Export of prediction trades: Coinbase has not published one: the help pages describe the app screens and the daily statement
Contract profit or loss: Coinbase has not published which form, if any, CFM issues for event contracts
Form 8949: No longer available through the Coinbase Retail Tax Center from tax year 2025
Where it is offered: U.S. residents only, excluding Nevada and Michigan

How do you file Coinbase prediction market taxes? Four documents a year is rebuilt from.

Each step is a document Coinbase describes, and what it adds to the year.

1. The forms Coinbase sends

Coinbase lists Form 1099-DA, Form 1099-MISC, Form 1099-B and Form 1099-DIV, each for the activity it names. The 1099-B arrives via Coinbase Taxes for US customers who traded futures, commodities, options and other financial instruments. Coinbase has not published which form, if any, CFM issues for event contracts. A form that does arrive shows what Coinbase reported; what each one covers is in Coinbase tax forms, and the IRS describes Form 1099-DA on its About Form 1099-DA page.

Forms Coinbase lists: Form 1099-DAForm 1099-MISCForm 1099-BForm 1099-DIV
Form 1099-B via Coinbase Taxes: For US customers who traded futures, commodities, options and other financial instruments
Contract profit or loss: Coinbase has not published which form, if any, CFM issues for event contracts

2. The Coinbase daily statements

Coinbase’s payouts article calls the daily statement “the official record of all settled payouts”. Each payout appears under “The Following Event Contracts Settled Today” on the daily statement, as a credit marked CR. Under the CFM agreement, confirmations and statements are deemed conclusively accurate unless objected to in writing within 24 hours. A year’s statements, read in date order, list every settlement in it.

Official record: The daily statement, which in-app history can briefly lag
Where a payout appears: Under “The Following Event Contracts Settled Today” on the daily statement, as a credit marked CR
Objecting to a statement: Confirmations and statements are deemed conclusively accurate unless objected to in writing within 24 hours

3. The Coinbase transaction lines in the app

On the predictions portfolio page, each transaction line opens to show status, market, outcome choice, payout, number of contracts owned, fill price, profit and payment method. The page shows two PnL figures. Top amount: “sum of current unrealized PnL and daily realized PnL”. Bottom amount: “sum of daily realized PnL which may not include the current day’s amount”. Where the app and a statement differ, the daily statement reflects the settled amount. The lines carry the fill prices a cost per position is built from.

A transaction line: Status, market, outcome choice, payout, number of contracts owned, fill price, profit and payment method
What the in-app P&L covers: Top amount: “sum of current unrealized PnL and daily realized PnL”. Bottom amount: “sum of daily realized PnL which may not include the current day’s amount”
When the app and the statement differ: The daily statement reflects the settled amount

4. The Coinbase USDC conversion rows, for an account funded with USDC

Coinbase’s App API records USDC sold to fund futures as fcm_futures_usdc_sell and, for further margin or losses on open futures, fcm_futures_usdc_sell_additional_encumberment_rollup. Cash moving between the futures and spot accounts posts as derivatives_settlement. For a prediction contract bought with USDC, Coinbase has not published whether it is a sale of USDC, which transaction type records it, or how it is reported. Those rows sit on the crypto side of the account, not in the futures account that holds the contracts.

fcm_futures_usdc_sell: Conversion of USDC to USD to support the anticipated margin requirement for a futures trade
USDC sold for more margin: Conversion of USDC to USD to support additional margin requirements or cover losses for open futures positions
derivatives_settlement: Daily cash transfers between futures and spot accounts for the US-regulated futures product
Buying a contract with USDC: Coinbase has not published whether it is a sale of USDC, which transaction type records it, or how it is reported

The net for the year goes to whichever forms the route uses: Form 8949 and Schedule D, Form 6781, or Schedule 1 and Schedule A. How each one treats the same Coinbase year, fees and a position open at December 31 is in Coinbase prediction market taxes.

What each misses

What each Coinbase document does not cover.

Coinbase’s crypto tax tools were built for the spot account.

Coinbase’s gain/loss report leaves out Coinbase Wallet, Coinbase Pro and Coinbase Prime activity. For CFM, Coinbase has not published whether the report includes prediction-market activity. Coinbase Taxes describes itself as covering activity on Coinbase.com, including CCM brokerage tax forms; CFM is not named. Form 8949 is no longer available through the Coinbase Retail Tax Center from tax year 2025.

So no Coinbase document hands over a finished Form 8949 or Form 6781 for prediction contracts. The statements and transaction lines are the inputs either form is filled from. There is no IRS guidance on how event contracts are taxed, so which form a year lands on follows the route used.

Gain/loss report: Leaves out Coinbase Wallet, Coinbase Pro and Coinbase Prime activity
Gain/loss report and CFM: Coinbase has not published whether the report includes prediction-market activity
Form 8949: No longer available through the Coinbase Retail Tax Center from tax year 2025
What Coinbase Taxes covers: Activity on Coinbase.com, including CCM brokerage tax forms; CFM is not named

Michigan and Nevada

Coinbase prediction markets in Michigan and Nevada in 2026.

Two states changed where a year’s closing trades appear.

Coinbase’s help pages limit prediction markets to U.S. residents only, excluding Nevada and Michigan. In Michigan, the Michigan Gaming Control Board announced on October 7, 2026 that CFM agreed to stop offering new sports-related event contracts to Michigan customers and to close out remaining open customer positions by 12:00 a.m. ET on October 10, 2026. That stipulation covers sports-related contracts only; the help pages exclude Michigan from prediction markets entirely. In Nevada, Coinbase’s apply page says that under a temporary restraining order from the Nevada State Gaming Control Board, open positions may be held until close, with winnings paid to the primary account as normal, or sold.

For a Michigan customer, a position the close-out covered ends by October 10, 2026, so its closing trade sits in the statements up to that date rather than on the day its market resolves. For a Nevada customer, a position held to the end settles when its market resolves, and one sold closes on the day of the sale. Each state’s order is followed in Coinbase legal status.

Where it is offered: U.S. residents only, excluding Nevada and Michigan
Michigan open positions: CFM agreed to stop offering new sports-related event contracts to Michigan customers and to close out remaining open customer positions by 12:00 a.m. ET on October 10, 2026
Nevada open positions: Under a temporary restraining order from the Nevada State Gaming Control Board, open positions may be held until close, with winnings paid to the primary account as normal, or sold

Realize and Coinbase

How Realize handles a Coinbase year today.

Realize does not connect to Coinbase. The filing calculator takes a net figure instead.

On the Coinbase App API, the transaction types include none for prediction markets or event contracts. Advanced Trade fills are filtered by spot, future, equity, option group or future group; no prediction product type. Coinbase’s own agent connector lists prediction markets as “coming soon”. Kalshi’s API returns fills for the member that placed the order; for a Coinbase trade that member is Coinbase Financial Markets, so a Coinbase customer cannot read their trades from Kalshi’s API. Its FCM endpoints are for FCM clearing members only, and its documentation does not mention Coinbase. Outside the retail account, Coinbase documents Coinbase Derivatives: Predictions, Coinbase’s own prediction exchange API, for member firms and FCMs, priced in USDC; Sandbox only, with production “coming soon”. With no retail API to read the trades from, Realize has no Coinbase connection. The filing calculator prices a net result from the statements under the three common routes.

Coinbase App API: Its transaction types include none for prediction markets or event contracts
Advanced Trade fills: Filtered by spot, future, equity, option group or future group; no prediction product type
Coinbase’s agent connector: Lists prediction markets as “coming soon”
Coinbase Derivatives: Predictions: Coinbase’s own prediction exchange API, for member firms and FCMs, priced in USDC; Sandbox only, with production “coming soon”
Kalshi’s API: Returns fills for the member that placed the order; for a Coinbase trade that member is Coinbase Financial Markets, so a Coinbase customer cannot read their trades from Kalshi’s API. Its FCM endpoints are for FCM clearing members only, and its documentation does not mention Coinbase

Sources16 documents

Where each fact comes from.

Every figure above links to one of these, read on the date shown.

Price your Coinbase prediction-market year three common ways.

Enter your Coinbase prediction-market net for a federal range under each common route.

Calculate your taxes