Glossary/Proceeds

Proceeds

The amount received when a position is closed. $1/share for winning bets, $0 for losing, or the sale price.

Proceeds are the total amount you receive when a position closes. Combined with your cost basis, proceeds determine your gain or loss.

Gain/Loss = Proceeds − Cost Basis

Types of proceeds in prediction markets

  • Winning settlement: $1.00 per share. You bought YES and the market resolved YES, or bought NO and it resolved NO.
  • Losing settlement: $0.00 per share. Your side lost.
  • Sale before settlement: Whatever the buyer paid. Could be any amount between $0 and $1.

Fees reduce proceeds

Some platforms charge fees on settlements or sales. These fees reduce your proceeds. If you received $1.00 per share but paid a $2.00 settlement fee on 100 shares, your effective proceeds are $98.00.

Reporting proceeds

Proceeds are reported on Form 8949 (column d) for the capital gains method. On a 1099-B, the proceeds amount should match what the platform reports.

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