How Kalshi perpetuals may be taxed
Kalshi's perpetual futures are so new that the tax questions are genuinely unsettled, even more so than for event contracts. This guide lays out the framework and the open questions rather than pretending there is a clean answer.
It is educational, not tax advice. Given how new perpetuals are, anyone trading them should work with a tax professional.
Regulated futures and Section 1256
Traditional regulated futures contracts traded on a US exchange are the textbook example of a Section 1256 contract, which receives the 60/40 split: 60% long-term and 40% short-term capital gains regardless of holding period. Because Kalshi's perpetuals are CFTC-regulated futures, Section 1256 is at least a natural starting point for the analysis.
Why perpetuals complicate it
Perpetuals are not ordinary dated futures. They never expire, they use a funding mechanism, and they are cash-settled with leverage. The IRS has issued no specific guidance on how these features map onto existing categories, so whether the classic regulated-futures treatment cleanly applies is an open question rather than a settled rule.
Funding, gains, and recordkeeping
Beyond the headline classification, perpetuals raise practical questions: how funding payments you make or receive are characterized, how mark-to-market would apply to an open position, and how to track all of it across many trades. These details matter for an accurate return and are exactly where a professional earns their fee.
The honest bottom line
This is the least settled corner of an already unsettled area. Do not assume perpetuals are taxed the same as Kalshi event contracts, and do not assume Section 1256 automatically applies. Keep meticulous records of every trade and funding payment, and decide your treatment with a qualified tax professional before you file.