Capital gains
Capital gains, built from your trades.
For people who file prediction markets as capital gains: every position you sold or that settled, one row each on Form 8949.
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1,012
386
126File- Short-term
- $17,710
- Long-term
- $530
- If −$18,240
- $3,000/yr · rest carries
DraftThree rules shape the year.
1. A sale or a settlement
Each closed position is one row: what you paid, what came back. A settlement counts as a sale.
2. Short or long term
Held a year or less is short-term. Longer is long-term.
3. Losses
A net loss can take up to $3,000 a year off other income. The rest carries forward.
Form 8949, every row filled.
- Form 8949, Box C and Box FNo venue reports these on a 1099-B, so every row is filled for you.
- Form 8949 rows CSVThe same rows in form order, for your accountant.
Unsettled
Precedent, and arguments against.
Capital gains is how most investments are taxed. The arguments against it come from the other routes: that an event contract is a Section 1256 contract, a wager or a swap.
There is no IRS guidance for prediction markets, but all income must be reported. Realize explains the options so you can choose for yourself or with one of our licensed CPAs.
The same year, every route.
See this year beside gambling, ordinary income and Section 1256 before you choose.
Questions about capital gains
They are not on this year's Form 8949. Each is reported in the year it is sold or settles.
Open positions on December 31The yearly limit on a net loss against other income is $1,500 instead of $3,000. The rest still carries forward.
Form 8949 totals carry to Schedule D, then to Form 1040. Any tax program accepts them entered by hand.
Capital gains in fullSee your year as capital gains.
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