Prediction markets are booming. Does your CPA understand Kalshi & Polymarket accounting?
// PREDICTION MARKET TAX SPECIALISTS
CountDeFi. Experts in prediction market tax accounting.
CountDeFi provides specialised tax accounting for US prediction market traders. We're not just CPAs, we're data scientists who reconstruct your full trading history across Kalshi, Polymarket, and on-chain platforms to deliver accurate, defensible tax reports.
If your activity is complex, spans multiple platforms, or runs on-chain through Polymarket, CountDeFi can help with affordable accounting plans.
We operate online and in your timezone.
// THE OPPORTUNITY
Prediction markets taxes offer multiple routes - some can even lower your tax bill
The IRS Hasn't Ruled. Your Return Still Has To.
There is no IRS guidance telling you how prediction market gains are taxed. Depending on the facts, your Kalshi or Polymarket gains could be treated as Section 1256 contracts, capital gains, ordinary income, or gambling, and each one produces a different tax bill. We help you take a position you can actually defend.
The Break-Even Trap Most Traders Miss
From tax year 2026, if your gains are treated as gambling, you can deduct only 90% of your losses against your winnings. That means a trader who wins 100,000 dollars and loses 100,000 dollars, net zero, can still owe tax on 10,000 dollars of phantom income. Getting your classification and records right is what keeps you out of that trap.
Avoid overpaying Predictions Markets Tax
The difference between a realised gain, settlement payout, trading profit, or income event can materially change your tax outcome. Reviewing your trading history, settlement activity, and wallet records before filing helps ensure you're reporting correctly and paying only what the rules require.
// who we are
"Prediction market taxes aren't just about calculating gains and losses. The reporting position you take can materially affect your tax bill. CountDeFi helps traders identify the most appropriate and tax-efficient treatment based on their facts and circumstances."
Chris Herbst
Founder
// PREDICTION MARKETS TAX experts
Defensible prediction markets reporting in a grey area of tax
Prediction market tax has never been straightforward. We've been reconstructing complex trading and on-chain activity since 2017, helping traders handle everything from a handful of Kalshi contracts to thousands of Polymarket positions across wallets.
Usually, the biggest challenge isn't the tax rate. It's two things: the data, and the classification. Polymarket runs on-chain with no 1099-DA, so every deposit, trade, and withdrawal has to be reconstructed from wallet activity. And with no IRS guidance, whether your gains are Section 1256, capital, ordinary, or gambling income changes what you owe.
These aren't edge cases. It's the reality of trading event contracts in 2026. Without solid data and a clear position, you can't know your real tax exposure. So how can you be confident your return holds up if the IRS asks?
CountDeFi reconstructs incomplete trading histories, traces activity across platforms and wallets, and delivers accurate, defensible tax reports you can file with confidence. Getting your prediction market taxes sorted doesn't have to cost a fortune. At CounfDeFi we do not bill by the hour. Instead, our pricing scales with transaction volume and complexity, and all plans include software fees, transaction reconciliation, and a complete tax report.
View pricing →
Clients Worldwide
Crypto Tax Reports Completed
Crypto Transactions Reconciled
// services
Our prediction markets accounting services
Polymarket Tax Reporting
Polymarket activity often combines wallet transactions, USDC funding, market settlements, and event contract trading. CountDeFi reconstructs complete trading histories and produces accurate tax calculations.
Prediction Market Gain & Loss Tracking
Every market purchase, sale, settlement, and payout can affect your tax position. As prediction market tax professionals, CountDeFi calculates gains and losses across your complete trading history.
Wallet & USDC Reconciliation
Funding prediction markets often involves moving USDC across exchanges and self-custody wallets. Missing transfers can distort gain calculations and create reporting errors.
Prediction Market Settlement Analysis
Market resolutions create unique reporting challenges that many tax tools struggle to interpret correctly. CountDeFi reviews settlements individually to ensure accurate treatment.
Kalshi Tax Reporting
Kalshi traders frequently deal with hundreds of settled contracts across multiple markets. As prediction market tax specialists, CountDeFi reconciles positions, settlements, and account activity to ensure accurate reporting.
Multi-Platform Reconciliation
Many traders use prediction markets and platforms over time. CountDeFi consolidates data from prediction markets, exchanges, and wallets into a single reporting framework.
Missing Transaction Recovery
Lost exports and incomplete records are common in prediction market tax accounting. CountDeFi rebuilds missing histories using wallet data, blockchain records, and platform information.
Cross-Border Reporting
We assist traders subject to reporting obligations in multiple jurisdictions, including the US, South Africa, Australia, Canada, and the UK.
// EXPERT SKILLS
Why traders hire CountDeFi for prediction market accounting
Prediction market traders often need professional help because the tax situation is complex, on two counts. First, the records. Platforms like Polymarket run on-chain, often without sending tax forms to their customers. Traders can end up with thousands of transactions spread across wallets, exchanges, USDC transfers, deposits, withdrawals, market settlements, and closed positions.
Secondly, the rules. The IRS has not issued direct guidance on how prediction market contracts should be taxed. The same trading activity may be reported under different frameworks, with materially different tax outcomes. CountDeFi provides a crypto and prediction market accounting service that deals with both. We reconstruct your trading history from wallets, exchanges, and prediction market activity, then analyse the most appropriate tax treatment based on your facts and circumstances. The result is a complete filing position supported by documentation, calculations, and a methodology you can explain and defend.
// TAILORED PRECISION
Why tax software battles with complex crypto
Tax software is a great starting point, but prediction markets like Polymarket and Kalshi create challenges most platforms weren't built to handle. Traders often move funds between wallets, exchanges, USDC, and multiple prediction markets, while unresolved tax classification questions can materially affect the final tax outcome.
That's where CountDeFi comes in. As crypto accounting specliasts we reconstruct the data, review the activity, and help determine a defensible reporting position. The result is a complete tax report you can file with confidence. CountDeFi is Koinly's #1 Global Partner, and we use Koinly's calculation engine as part of our reporting workflow. If you already have a Koinly portfolio, we can work directly from it.
// WORK WITH US
How to work with CountDeFi to calculate your
Polymarket and prediction market taxes
At CountDeFi, we use our proprietary Precision 7 System to take you from data chaos to crypto tax clarity. We ingest data from Polymarket, Kalshi, wallets, exchanges, and DeFi protocols, identify missing records, reconcile transactions, and prepare a complete tax position. Where records are incomplete, we investigate. Where tax treatment is unclear, we help determine a defensible approach.
It starts with a free 15-minute consultation to discuss your trading activity and recommend the right pricing plan for your needs. We work remotely with clients across the US and globally. Book an obligation-free call today and see how CountDeFi's prediction market tax experts can help you.
// Trustpilot testimonials
Real reviews from crypto investors like you
Caleb
They worked with me on all of my transactions at a better price than most other companies.
5 Star Review | April 13, 2026
Tim S
CountDefi did a great job at reconciliation and I recommended them for their dedication to detail. The IRS schedule forms they provided in their reports were pivotal to filing my taxes smoothly.
5 Star Review | Jun 03, 2026
Alex W
Given the complex nature of cryptocurrency transactions, calculating taxes is extremely difficult. This has been a major problem for me in previous years and CountDeFI is a life changing solution for me! The entire process is extremely surprisingly smooth.
5 Star Review | Jan 29, 2025
Frequently asked questions
What do prediction market accounting services include?
Do I need a CPA or specialist accountant for prediction market taxes?
Prediction market accounting services turn your raw trading activity into records that can actually be used for tax reporting. A prediction market accountant should reconcile purchases, sales, settlements, payouts, deposits and withdrawals, then calculate gains and losses and document the tax treatment applied. CountDeFi's prediction market accounting services cover Kalshi, Polymarket, wallets, exchanges and other event-contract activity, including missing or incomplete transaction histories.
You may need specialist prediction market accounting support if you have high transaction volumes, trade across several platforms, use on-chain markets such as Polymarket, or are unsure how your contracts should be classified for tax. A general CPA may be able to file your return but may not have the data or crypto expertise needed to reconstruct complex prediction market activity. CountDeFi combines crypto accountants, tax specialists and data specialists to prepare the underlying calculations and reporting your CPA needs.
Can CountDeFi handle Polymarket accounting?
What prediction market tax reports will my CPA need?
Yes. CountDeFi provides Polymarket accounting and tax reporting for traders with on-chain activity. Polymarket accounting can involve more than adding up wins and losses: USDC may move between exchanges, self-custody wallets and Polymarket before a position is opened or settled. We reconstruct the wallet activity, identify transfers, reconcile trades and settlements, and prepare a complete tax report rather than relying on a platform statement that may not contain everything required for filing. This directly reinforces the service already described on the page.
Your CPA needs more than a headline figure showing how much you won or lost. Depending on your activity and the reporting position taken, prediction market tax reporting may require a reconciled transaction history, proceeds, cost or basis information, realised gains and losses, settlement records and supporting calculations. CountDeFi prepares the prediction market accounting records and tax reports so your CPA has a clear, documented set of figures to work from when preparing your return.
Do you provide Kalshi accounting and tax reporting services?
Can a prediction market accountant help me lower my tax bill?
Yes. CountDeFi provides specialist Kalshi accounting and tax reporting for US prediction market traders. We reconcile your contracts, purchases, sales, settlements and payouts, calculate gains and losses, and prepare the tax reporting your CPA needs for filing. If you also trade on Polymarket or other prediction markets, we can consolidate that activity into the same accounting record.
Potentially. Prediction market accounting is not just about calculating a number and handing it to your CPA. The tax treatment applied to your activity can materially affect what you owe, particularly while prediction market taxation remains an evolving area. CountDeFi looks at your complete trading history and circumstances, identifies the most appropriate defensible treatment, and can provide dedicated tax planning before filing. The aim is to make sure you claim what you are entitled to and do not pay more tax than the rules require.
How much do prediction market accounting services cost?
Does CountDeFi charge prediction market traders by the hour?
CountDeFi's prediction market accounting starts at $695 for up to 500 transactions. Our Standard plan is $1,695 for up to 3,000 transactions, Premium is $2,995 for up to 5,000, Expert is $4,495 for up to 10,000, and Degen is $5,995 for up to 15,000 transactions. All plans are billed in USD. The right plan depends on your total transaction volume and the complexity of your prediction market activity. A trader with a few hundred Kalshi contracts may fit comfortably into Basic, while high-volume Polymarket activity spread across wallets, exchanges and other DeFi protocols can require a higher tier.Every CountDeFi plan includes software fees, transaction reconciliation and a complete crypto tax report. US plans also include the relevant Form 8949 and Schedule D reporting.
No. CountDeFi does not use open-ended hourly billing for prediction market accounting. Our plans are priced according to transaction volume and complexity, so you know which pricing tier applies before the accounting work begins.This matters for prediction market traders because reconciliation can involve far more than counting winning and losing contracts. Polymarket activity may need to be traced through wallets and USDC transfers, while active traders may have thousands of purchases, sales and settlements to reconcile. With CountDeFi, that work is covered within the agreed service plan rather than accumulating an unknown number of CPA or accountant hours. CountDeFi's published pricing currently ranges from $695 to $5,995 for portfolios of up to 15,000 transactions.
What does the price of prediction market accounting include?
Does CountDeFi's prediction market accounting price include a tax report for my CPA?
Every CountDeFi plan includes the software, transaction reconciliation and completed tax report. For US clients, plans include Form 8949 and Schedule D reporting or the appropriate reporting output for the activity involved. Missing-data analysis is also included. For a prediction market client, that means we do the accounting work needed to turn activity across platforms, wallets and exchanges into a usable tax position. We reconcile the underlying transactions, identify missing or incorrectly classified activity, calculate the relevant gains and losses, and prepare the reporting for filing or for your CPA. You are not paying $695 and then discovering that the software, reconciliation or final report costs extra.
Yes. A completed tax report is included in every CountDeFi pricing plan. US plans include Form 8949 and Schedule D reporting, and our accounting process includes the transaction reconciliation and missing-data analysis needed to support those calculations. If you already have a CPA, you can give them the completed prediction market accounting and supporting crypto tax reports rather than paying them to reconstruct thousands of Kalshi, Polymarket and wallet transactions from scratch. CountDeFi can also work alongside your existing CPA, which is already how the broader crypto accounting service is structured.
