How Does Kalshi Calculate Profit and Loss?

Kalshi calculates profit and loss with the first-in, first-out (FIFO) method. Its Help Center says the figure includes fees and any rebates, is split by year, and updates on the first morning of each month. Kalshi also says the statement is not tax advice, and it isn’t the number you can copy onto a return.

What does first-in, first-out mean on Kalshi?

When you sell, the sale is matched against the contracts you bought earliest. This example shows why that matters. You buy 100 Yes at $0.40 on March 1, buy 100 more at $0.60 on March 10, then sell 100 at $0.55 on March 20. Fees are left out.

Your overall result is the same once everything closes. If the market settles at $0, FIFO gives a $15 gain and a $60 loss. The newest-lot match gives a $5 loss and a $40 loss. Both come to a $45 loss.

The match matters when the remaining position is still open at the end of the year, because it changes how much you realize in each year. Under capital gains treatment, it also decides which lot’s holding period applies.

Where do you find the statement?

1. Log in to Kalshi.
2. Go to Account and select Tax Info.
3. Select the year.
4. Download your Profit and Loss statement.

Kalshi says any tax forms you qualify for are on the same page, and that some arrive by email from Zenwork, its form provider. Check your spam folder if you expected one.

How often does the statement update?

Monthly. Kalshi says updates occur “on the first morning of each month,” so a mid-month check “may not reflect the latest data.” If your total looks wrong in the middle of a month, recent trades are the first thing to check. Wait for the January update before you rely on the prior year’s figure.

Why isn’t the P&L your tax number?

Kalshi says the statement is “not tax advice” and that each member is responsible for the accuracy of their returns. It also falls short of what a return needs:

Two more things to check:

• Rebates are inside it. Kalshi says the figure includes any rebates, so it blends trading results with them.
• Interest and rewards are separate. They can come on a 1099-INT or 1099-MISC. Your reward credits only appear in the activity export, so download that too.

Do you have to use FIFO on your tax return?

No rule says so for event contracts. For stock, Treasury regulations charge a sale against the earliest lot when you don’t adequately identify which lot you sold. That rule names stock in a corporation, so applying it to event contracts is by analogy. WagerMints also matches lots first-in, first-out, which keeps your numbers comparable to Kalshi’s. Whatever you use, use the same approach throughout the year.

How should you use the statement?

• Use it as a cross-check on your own total, after the January update.
• Download the per-trade and activity files as well, and keep them with your return.
• Pick a tax method using your trades, then report it on the matching form.

Upload your Kalshi files to WagerMints and it prices the year under all four methods, free.

Questions about Kalshi’s Profit and Loss statement

General information about US federal tax, not tax advice.