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Prediction Markets Hit Tax Season Before Tax Rules Arrive
A surge in activity on platforms such as Kalshi and Polymarket has collided with a basic problem: millions of users may owe taxes on winnings, but there is still no clear federal playbook for how to report them.
Key Takeaways
- The IRS has not issued clear guidance for taxing prediction market gains and losses.
- Tax professionals are using different frameworks, including derivatives, gambling, and regular income treatment.
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DT Editorial Team··via wired.com