For CPAs and preparers

When a client shows up with Kalshi or Polymarket trades

WagerMints rebuilds your client’s year from their own files and prices it under all four methods in use. You get the figures, the open questions and the citations, and you keep the judgment call.

Last reviewed November 3, 2026

What do you get for each client?

Item	What it is
Method comparison	The same year under capital gains, Section 1256, ordinary income and gambling
CPA summary letter	The activity, the four-method table, notes on each method and the judgment flags, as a PDF
Filled forms	Form 8949, Schedule D and Form 6781 as PDFs. Pick one method, because the forms cover different methods
Form 8949 file	A CSV to import into tax software, and a statement listing every transaction
Open positions	Each one named. A Section 1256 mark is included only if a December 31 price is entered

What does it cover that a 1099 doesn’t?

Kalshi: trade files, plus reward credits from the activity export, which the trades export leaves out. Kalshi guide.
polymarket.com: the year rebuilt from a public wallet address, with Section 1256 marked as unavailable. Polymarket guide.
State rules: rates and gambling loss treatment for every state and DC, with legal status by state.

Where are the open questions?

Section 1256. Disputed. Both sides, the Form 8275 question, and the year-end mark.
Sports contracts as wagers. The Tax Law Center says they appear to be. Why a state’s label doesn’t decide it.
Wash sales. No guidance on event contracts.
Unreported years. Amending or filing late.

How do you check the numbers?

Every figure traces to a trade in the client’s file. How we check our numbers sets out the method and the tests. Reconcile against any 1099s your client received, and review everything before you sign.

Questions from tax pros

Does WagerMints prepare or sign returns?

No. WagerMints is software that works out figures and fills forms. It doesn't sign returns or give tax advice, and you decide the position and review the numbers.

Which method does WagerMints recommend?

None. It prices capital gains, Section 1256, ordinary income and gambling side by side, and notes the open questions on each. The IRS hasn't issued guidance on event contracts, so the choice stays with you and your client.

Can my client use it without giving me a login?

Yes. Your client can run the report in their browser from a Kalshi file or a polymarket.com wallet address, then send you the letter and forms.

Have several clients with these trades? Email contact@wagermints.com. General information about US tax, not tax advice.

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