Docs: Konzepte/Plaene in docs/ mit Typ-Unterordnern buendeln
Root aufgeraeumt: alle Konzept-/Plan-/Fach-Dokumente nach docs/ verschoben, organisiert nach Typ (wie fuer ein separates Docs-Repo vorgeschlagen, aber bewusst in diesem Repo, damit Plan->umsetzende-Commits nachvollziehbar bleiben): - docs/konzepte/ (KONZEPT-*) - docs/umsetzungsplaene/ (UMSETZUNGSPLAN-*) - docs/ideen/ (fruehe Ideen, Platzhalter) - docs/pruefplaene/ (PRUEFPLAN-*) - docs/steuer/ (Steuer-/Buchhaltungs-Doks, z.B. US-CPA-Fragebogen) - docs/README.md (Index/Konventionen) Getrackte Plaene als Rename verschoben (History erhalten); zuvor untracked Konzept-/ Plan-Dateien jetzt versioniert. Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
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Claude Opus 4.8
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# US Tax Treatment Questionnaire — Polymarket Trading Operations (Florida LLC)
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*Prepared for our US CPA / tax advisor. Purpose: determine the correct federal tax treatment and the
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exact report formats so our in-house accounting tool computes and exports precisely what you need.*
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---
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## Context
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We operate automated trading strategies on **Polymarket** — a blockchain-based prediction-market /
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event-contract platform — through a **Florida LLC**. Positions settle in **USDC** (a USD-pegged
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stablecoin) on the Polygon network via Polymarket's smart contracts and **Gnosis-Safe proxy wallets**.
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We are building an in-house accounting tool that:
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- Independently pulls **every transaction of every trading account directly from Polymarket** (not from
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our own trading database) and stores an **immutable, audit-traceable ledger** — each entry backed by a
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blockchain transaction hash / platform activity ID and a stored raw-data snapshot.
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- Reconciles each account against its **on-chain USDC balance** as a completeness check.
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- Produces **per-account and consolidated period statements** (monthly and custom date ranges) and will
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produce **US federal tax computations** (Form 8949 / Schedule D-style) under assumptions **you specify**.
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**Transaction/event types we capture per account:** buys, sells, redemptions (winning-position payouts at
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market resolution), losing positions expiring worthless, trading fees, maker rewards / rebates, on-chain
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USDC deposits and withdrawals.
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Where a treatment is uncertain, we will implement **your chosen approach as a documented, configurable
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assumption** that is disclosed on every export. Please answer as many items as are relevant.
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---
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## A. Entity, filing & registration
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1. Federal classification of the LLC: **single-member (disregarded entity)** or **multi-member
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(partnership, Form 1065 + Schedules K-1)**? Any election to be taxed as **S-corp / C-corp**
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(Form 2553 / 8832)?
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2. Which federal forms/schedules will this activity flow into (e.g., Schedule C, Schedule D + Form 8949,
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Form 1065/K-1, Form 4797)?
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3. Florida has no personal state income tax — is there anything at the entity level we must reflect, or
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is this **federal only**? Any Florida annual-report items affecting our accounting?
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4. EIN and tax year (we assume calendar year)?
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## B. Character & classification of Polymarket P&L
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5. How should gains/losses from Polymarket **event contracts** be characterized: **capital gains/losses**
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(Form 8949 / Schedule D), **ordinary income**, **gambling winnings/losses**, **§1256 contracts**
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(60/40, mark-to-market), or **other**?
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6. Do you regard these instruments as **securities, commodities, swaps, wagering transactions, or
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property**? Does the characterization differ by market type (e.g., sports vs. politics vs. crypto-price)?
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7. If capital: our holding periods are effectively always **under one year** — do you want everything
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reported as **short-term**, or should we still compute per-lot holding periods (acquisition → disposition)?
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8. If gambling treatment applies: how should we present winnings vs. losses (losses limited to winnings;
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per-wager vs. session netting)?
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## C. Trader Tax Status & §475(f) mark-to-market
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9. Given the volume and automation, could the LLC qualify for **Trader Tax Status (TTS)**? Do you
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recommend a **§475(f) mark-to-market election** (ordinary gain/loss, no wash-sale, no capital-loss
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limitation, year-end MTM)?
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10. If §475(f) MTM applies, what **price source and timing** would you accept to mark **open positions**
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at period/year end (last trade, mid-price, resolution probability)?
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11. **Self-employment tax:** does this activity create SE-tax exposure, or is it exempt (trading gains
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generally not SE income)?
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## D. Cost basis & lot accounting
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12. Cost-basis method: **FIFO** (our default), **specific identification**, or other? Any documentation
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requirements for specific-ID?
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13. Should trading **fees** be **capitalized into basis / netted against proceeds**, or deducted
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**separately** as expenses?
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14. **Redemption** (winning shares pay out at resolution): treat as a disposition at **$1.00/share**
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proceeds against lot basis? **Losing shares** expiring worthless: treat as a disposition at **$0**
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(realized loss) on the resolution date?
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15. Partial fills within one transaction: acceptable to **aggregate same-tx fills into one lot**?
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## E. USDC / stablecoin treatment
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16. May we treat **USDC as a USD cash-equivalent (1:1)**, so acquiring/spending USDC is **not** itself a
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separate taxable crypto disposition? Or must USDC be tracked as **property** with its own basis?
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17. If USDC must be tracked as property, what **USD valuation source/timing** per transaction do you require?
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## F. Wash-sale & related rules
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18. Do **wash-sale rules (§1091)** apply to these instruments (they are not traditional "stock or
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securities," and crypto is currently generally exempt)? If potentially applicable, should the tool
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**flag/adjust** wash sales?
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19. Are **straddle (§1092)** or **constructive-sale** rules relevant to any hedged/paired positions?
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## G. Income items & deductions
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20. **Maker rewards / liquidity rebates** received in USDC: **ordinary income at fair value on receipt**?
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Where reported? Does receipt create a **new USDC lot** at that value?
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21. Deductible business **expenses** (platform/trading fees, Polygon gas/POL, infrastructure, software,
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this tooling): where and how (Schedule C vs. netted)?
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22. Will Polymarket issue any **1099** (likely not, as a non-US operator)? If so, how should we reconcile to it?
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## H. Foreign account / information reporting
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23. Is a Polymarket account (funds in a Polygon **Gnosis-Safe proxy** on a non-US platform) a **"foreign
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financial account"** triggering **FBAR (FinCEN Form 114)** above the $10,000 aggregate threshold?
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24. Does **FATCA / Form 8938** reporting apply (specified foreign financial assets)?
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25. Is **Form 8886** (reportable transactions) or any other information return relevant?
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26. Any concerns arising from Polymarket's **US regulatory status** that affect characterization or reporting?
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## I. Currency & valuation
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27. Reporting/functional currency: **USD** confirmed? We also generate **EUR** figures — needed for the US
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filing, or purely internal/EU personal use?
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28. FX source/timing: for non-USD figures, is the **ECB daily reference rate at transaction date**
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acceptable? For **USDC→USD**, is **1:1** acceptable or do you require actual spot?
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## J. Report format & delivery (so we tailor exports to you)
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29. Preferred deliverables: **Form 8949 CSV in the exact IRS column layout**, a **general-ledger** export,
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a **Schedule D summary**, and/or a **PDF statement**? Which formats do you want?
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30. Level: **per-account** statements, a **consolidated LLC** view, or both?
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31. Cadence: **monthly** bookkeeping packages plus an **annual** tax package? Do you need **quarterly
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estimated-tax** figures?
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32. Exact **columns/fields** on the disposition report (e.g., Description of property, Date acquired, Date
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sold, Proceeds, Cost basis, Wash-sale adjustment, Gain/loss, Short/Long)?
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33. **Audit-defensibility** documentation you want attached (methodology page, source transaction hashes,
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raw-data retention, reconciliation to on-chain balances)?
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34. Rounding/precision conventions (whole USD vs. cents)?
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## K. Anything else
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35. Any other **elections, forms, thresholds, or record-keeping standards** we should build into the tool
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now to make your work smooth and the LLC's filings defensible?
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---
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*We will encode your answers as the tool's default assumptions, each disclosed on every statement and
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adjustable in settings. Thank you.*
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