Kalshi and prediction market losses
Varies
Can You Write Off Kalshi and Prediction Market Losses?
Short answer: Possibly, but the tax treatment of event contracts is unsettled: they may be gambling losses or capital/1256 losses.
Keep every trade record and the year-end statement, and ask a CPA how to report them.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
BW-B22-00175
medium risk
Kalshi and prediction market losses
Varies
Individuals / Personal Taxes
Other Expenses
Personal Tax Deductions
Possibly, but the tax treatment of event contracts is unsettled: they may be gambling losses or capital/1256 losses.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Possibly, but the tax treatment of event contracts is unsettled: they may be gambling losses or capital/1256 losses. Keep every trade record and the year-end statement, and ask a CPA how to report them.
Category
- Personal Tax Deductions
personal deduction
search demand 2026
losses
gambling