Prediction markets are booming. Is your Kalshi and Polymarket tax position ready for the IRS?
// PREDICTION MARKET TAX SPECIALISTS
CountDeFi.
Leaders in prediction market tax reporting.
CountDeFi provides specialised tax accounting for US prediction market traders. We're not just accountants, 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 plans.
We operate online and in your timezone.
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
"CountDeFi is proud to support prediction market traders with complex crypto tax reporting. Our team is ready to find the best cost-saving option for your prediction markets activity, in line with current tax rules.
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. 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. 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. CountDeFi reconciles positions, settlements, and account activity to ensure accurate reporting.
Multi-Platform Reconciliation
Many traders use multiple 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. 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 prediction market traders hire CountDeFi
Two things make prediction market tax hard. First, the data: Polymarket runs on-chain with no 1099-DAa, so every deposit, trade, and USDC conversion has to be rebuilt from wallet activity. Second, the classification: with no IRS guidance, the same trades could be taxed as Section 1256 contracts, capital gains, ordinary income, or gambling, and each produces a different bill.
CountDeFi handle both. We rebuild the numbers, then work through the classification with you and file on a position you can defend.
// TAILORED PRECISION
Tax software battles with complex crypto
For many South African investors, crypto tax software is a great starting point. But DeFi, staking, NFTs, bridge transfers, multiple wallets, and years of transaction history can quickly create situations where software struggles to interpret what actually happened. That's where we come in.
Our team reviews, reconciles, and validates the underlying data before finalising your report. The result is a complete, accurate, and audit-ready SARS crypto tax report you can file with confidence.
CountDeFi is Koinly's #1 Global Partner. We rate Koinly highly and use its calculation engine as part of our reporting workflow. If you already have a Koinly portfolio, bring it over — we can work with it.
// WORK WITH US
How to work with CountDeFi to calculate your
Polymarket taxes
At CountDeFi, we use our proprietary Precision 7 System to take you from data chaos to crypto tax clarity. It starts with onboarding every data source you have, validating them, and hunting down every gap before we go anywhere near a calculation. From there we reconcile and categorise every transaction.
Where data is incomplete, we come back to you. Nothing is left unaccounted forwhile tax optimization is built into the process, not bolted on at the end.
It starts with a free 15-minute consultation where we talk through your situation and arrive at the right pricing plan for your needs. We operate online and in your time zone. Start with an obligation free call today.
// FIVE STAR Global REVIEWS
What our clients say
John
Very professional service; this is a good solution for crypto tax in SA—efficient and completed my audit in 3 days. I would highly recommend this service.
ZA
Anon
Countdefi was exactly the company I was looking for. I've done my own reporting over the past few years but needed experts in consolidating between exchanges & wallets and to assist in finding my missing transactions for staking. They were incredibly helpful with my questions and put all my reporting anxieties at ease.
ZA
Grant
I feel very well looked after by the CountDeFi team. They are highly knowledgeable and capable, finding each and every transaction and compiling a crypto report that is accurate and simple to understand. Crypto can be complex but Chris and the team make assessing and reporting one's crypto holdings a reassuring and professional experience.
ZA
