Disclaimer

Informational only. Not tax advice.

Nothing on this site or in any FileMyFills report constitutes tax advice, legal advice, or financial advice. Consult a qualified tax professional about your specific situation before filing.

Scope

Federal only. Reports cover federal tax treatment. State and local tax treatment varies and is not modeled.
Capital gains method only (v1). We compute gain/loss using capital gains treatment with FIFO cost basis. Other possible treatments — Section 1256 contract treatment and ordinary/gambling income treatment — are not modeled in this version and may produce different results.
Wash-sale rules not applied. Whether IRC § 1091 wash-sale rules apply to prediction market contracts is an open legal question. We do not apply them, and we flag this on every report.
Realized gains only. Open, unsettled positions at the end of the tax year are excluded. Only trades that fully closed during the year are included.

No IRS guidance

The IRS has not issued specific guidance on the tax treatment of prediction market contracts. The appropriate treatment is actively debated among tax professionals. The output of this tool is a reasonable starting point under one common interpretation — not a definitive answer.

Accuracy

FileMyFills makes reasonable efforts to compute figures accurately from the data provided. We make no warranties, express or implied, regarding the completeness or accuracy of any report. You should verify all figures before using them for any tax filing.

Liability

To the maximum extent permitted by applicable law, FileMyFills and its operators are not liable for any tax penalties, interest, or other damages arising from reliance on this service.