MyFundedPerps Taxes: You Are Probably Not Being Taxed on Perps

If you pass a MyFundedPerps evaluation and start taking payouts, the tax question you are probably worried about is the one everybody argues about online: how are perpetual futures taxed? Four candidate treatments, no IRS guidance, no settled answer.

That debate almost certainly does not reach you. MyFundedPerps describes every account on its platform — evaluation accounts and what it calls Simulated Funded Accounts — as operating in a simulated, non-executing environment. If that is how your account works, you never held a perpetual contract. Nothing was opened, funded or closed in your name on any exchange. What you have instead is a contractual right to a performance-based payment from a company, and that is a more settled question, not a less settled one.

Why the perpetual-futures debate does not reach a funded trader

The arguments about perp taxation all turn on the character of a contract you hold. Is it a §1256 contract getting the 60/40 split? Is it caught by the §1256(b)(2)(B) swap exclusion? Is it a notional principal contract? How are funding payments treated — ordinary at each settlement, a basis adjustment, or deferred to close?

Every one of those questions presupposes that you are a party to the contract. In a simulated, non-executing account you are not. There is no position, no counterparty, no funding payment flowing to or from you, and no settlement. The platform is scoring your decisions against live prices and paying you a share of a simulated result.

So the funding-payment asymmetry that can make a losing perp book generate tax — described on our perps hub — does not apply to you either. You did not pay or receive funding. You received, or did not receive, a payout.

This cuts both ways. You also do not get the things a real contract might deliver. No 60/40 blend is available to argue for. No capital-loss treatment on a drawdown. No §1256 year-end mark. A losing month in a simulated account is not a deductible trading loss, because there was no trade and no basis to lose — it is, at most, a lost opportunity to earn a fee.

What the payout is instead

If you want a number before April, our prop firm tax calculator models federal income tax, the 15.3% SE layer and state tax on a payout figure — which is exactly the stack described below. Whether the activity reaches trade-or-business status is the separate question the trader-tax-status checker walks through.

A performance-based payment from a company for services is ordinary income. Under IRC §61 income is income whatever it is called and whatever form it arrives in. The practical questions are which schedule it lands on and whether self-employment tax applies.

For a trader doing this with continuity and a profit motive, the usual answer is Schedule C, which means federal income tax plus 15.3% self-employment tax on net profit — 12.4% Social Security up to the 2026 wage base of $184,500, and 2.9% Medicare with no cap. Nothing is withheld, so the liability is yours to fund. Quarterly estimated payments are commonly recommended for exactly this reason.

Whether the activity rises to a trade or business is a facts-and-circumstances question, not a label you select. It is the same question that governs whether your evaluation fees are deductible, which is why the two issues move together.

Who actually issues your tax form — and why the answer is not obvious

MyFundedPerps is reported to pay through Rise (Riseworks). Our research into prop firm payout processors found that Rise appears in the payout chain of five separate futures firms, which means a trader who switches firms may not switch tax platforms.

But a payment rail is not a tax-form issuer. Those are different jobs and we do not infer one from the other. For at least one firm, Rise is reported to handle payments only while the tax document comes from elsewhere. As of this writing we have found no source that states who issues a MyFundedPerps trader's information return, and at least one reviewer reports being unable to answer that question from outside the firm.

The self-check that beats any third-party description, including ours: which entity asked you to complete a Form W-9 or W-8BEN? A payer that intends to file an information return generally needs your taxpayer identification number first. Whoever collected that is the entity to expect a form from, and the one to chase in late January if nothing arrives.

The name on your tax form may not be the name you signed up with

This is the most practically useful fact we found. MyFundedPerps’ own legal pages are reported to state that the product is owned and operated by Funding Perpetuals Holdings, Inc., doing business as MyFundedPerpetuals. The brand was originally announced as Funding Perpetuals.

So there are potentially three names in play — MyFundedPerps, MyFundedPerpetuals and Funding Perpetuals Holdings, Inc. — plus whatever name the payment rail uses on your bank statement. A trader searching a January inbox for “MyFundedPerps” alone can reasonably conclude no form was issued when one was, filed under an entity name they have never consciously read.

Check all of those names, and check the processor portal rather than only email. A form sitting unread in a dashboard is still a form the IRS received. We are reporting what secondary sources say about the entity structure, not asserting which entity contracts with you — your customer agreement names that, and it is the document that governs.

The product is no longer crypto-only, and that matters less than you would think

In early October 2026 the firm announced an expansion beyond crypto into multi-asset perpetual markets — reportedly covering stocks and indices, forex, and commodities such as gold and oil, across a reported 122 perpetual markets.

If you are now trading an equity perp in a funded account, you might expect the equity-specific machinery to arrive with it: §1259 constructive sales, the wash-sale question, §871(m). Those are real questions — we cover them on stock perpetuals taxes — but they attach to a contract you hold. In a simulated non-executing account you hold none of them, so the asset class you selected on the platform does not change your answer. The payout is still compensation for services.

That is worth stating plainly because the instinct runs the other way: a multi-asset platform feels like it should produce multi-asset tax treatment. It does not, if nothing was executed. The asset class becomes tax-relevant the moment an arrangement puts real positions in your name — which is the distinction on simulated vs live funded accounts.

Payouts taken as store credit: a genuinely open question

MyFundedPerps is reported to offer payouts either in cash through Rise or as store credit with a reported 10% boost. The credit route raises questions the cash route does not, and we have found no guidance addressing them directly:

• Is it income on receipt? §61 does not require cash. Property and credits received for services are generally includible at fair market value. A credit usable only to buy more evaluations from the same company is still consideration received.
• At what amount? The boosted face value, or what the credit is actually worth given it cannot be spent anywhere else? Those can differ, and nothing published resolves it.
• What is the boost? If $100 of cash entitlement becomes $110 of credit, the extra $10 looks like additional consideration for the same services rather than a discount on a later purchase — but the opposite characterisation is arguable.
• What happens on spending it? If the credit was taken into income, buying an evaluation with it should be a deductible business expense on the same facts as a cash purchase — which would make the round trip roughly neutral. Taking the credit into income and also not deducting the purchase would be the worst of both.

This is unsettled and fact-dependent, and the amounts can be small enough that the recordkeeping matters more than the theory. Keep the credit's face value, the date, the boost, and what you spent it on. A specialist can take a defensible position; what cannot be fixed later is a missing record.

Evaluation and reset fees

Fees paid for evaluations, resets and account upgrades are generally deductible as ordinary and necessary business expenses under IRC §162 once the trading business is actually underway — including attempts that failed.

The case that differs is the trader who has never been funded and has no payout history. There, the same fees may instead be start-up expenditures under §195 ($5,000 in the first active year, the remainder over 180 months). And if the activity is not engaged in for profit under §183, the route that used to rescue these fees is gone: OBBBA made the §67(g) suspension of miscellaneous itemized deductions permanent. Scope that correctly — it eliminates that route, which is the one an evaluation fee would have taken. §183 still allows deductions allowable without regard to a profit motive, so "nothing is deductible" overstates it as a general rule.

We do not describe these fees as "100% deductible." That wording was retired in October 2026 as overstated. Full reasoning on prop firm evaluation fees.

Two mechanics that are not tax events but change your records

The static drawdown floor. MyFundedPerps is reported to lock the drawdown floor to the starting balance permanently after a first payout, and a payout is reported to deduct the full gross amount before the split. Withdrawing everything available can leave an account sitting exactly on its floor. None of that is a taxable event — but it shapes when you take payouts, and payout timing decides which tax year the income lands in.

Year-end timing. Income generally follows the year the funds became available to you. A payout requested on December 30 that settles January 3 straddles two tax years; one requested and received the same day does not. If you are near a bracket edge or a wage-base edge, the request date is a lever — and the only reliable record of it is yours.

What to keep

• Every payout: request date, settlement date, gross amount, split applied, net received, and the rail it arrived on. Gross goes into income; fees are a separate deduction. Keeping only the net figure loses the deduction.
• Every fee: evaluations, resets, upgrades, add-ons — including the failures.
• Every store-credit event: face value, boost, date, and what it was spent on.
• Which entity collected your W-9 or W-8BEN, and any tax document it posts to a portal rather than emailing. A form sitting unread in a processor's dashboard is still a form the IRS received.
• Platform statements exported while you still have access. Access to a closed or breached account is not guaranteed, and a simulated account's history exists only on the firm's systems.

What we are not asserting

Platform mechanics are set by the firm and change without notice, and the sources available to us conflict with each other on several points. We have seen different figures for the profit split (80% standard versus up to 90% with a paid upgrade), different payout schedules (one request per day versus a weekly cycle in the terms of use), and two different descriptions of the $100,000 threshold (a lifetime payout cap per trader versus a graduation point after which new purchases stop but funded accounts continue).

We are therefore not asserting: the current profit split, the current payout schedule or minimum, how the $100,000 threshold operates, which legal entity contracts with you, which entity issues your information return, whether any particular account is or is not simulated, which of the three reported names appears on any document, that the multi-asset expansion is live or that its market count is current, or that any figure on this page is current. Read your own customer agreement and payout terms. Where this page says something is "reported," that means secondary sources say it and we could not verify it against first-party documentation.

Where this fits

• Perpetual futures taxes — the framework for perps you hold in your own account: both §1256 arguments, the funding treatments, and a venue table.
• 1099-NEC prop firm taxes — Schedule C mechanics, the payout-processor chain, and the $2,000 threshold change.
• Prop firm taxes — the hub for funded-account taxation generally.
• Prop firm evaluation fees — the §162 / §195 / §183 analysis in full.
• Crypto taxes — if you also hold crypto in your own name, that is a separate set of questions from anything above.

Frequently Asked Questions

Are MyFundedPerps payouts taxed as perpetual futures?

Almost certainly not. MyFundedPerps describes its accounts, including Simulated Funded Accounts, as operating in a simulated, non-executing environment. If that is how your account works you never held a perpetual contract, so the unsettled questions about perp characterisation, Section 1256 eligibility and funding payments do not reach you. The payout is a performance-based payment from a company, which is ordinary income and typically self-employment income reported on Schedule C.

Does MyFundedPerps issue a 1099?

We have found no source that states who issues a MyFundedPerps trader's information return. The firm is reported to pay through Rise (Riseworks), but a payment rail is not necessarily the tax-form issuer, and we do not infer one from the other. The reliable self-check is which entity asked you to complete a Form W-9 or W-8BEN, since a payer that intends to file an information return generally needs your taxpayer identification number first.

MyFundedPerps is from the MyFundedFutures team. Does the same tax treatment apply?

Not necessarily. A shared brand or team does not establish a shared legal entity, payout obligation, reporting system or tax treatment. Two products under related branding can sit in different entities, on different payout rails, with different paperwork. Check the customer agreement and payout terms for the account you actually hold.

Can I deduct a losing month in a simulated funded account?

No. In a simulated account there is no position and no basis, so a drawdown is not a deductible trading loss. At most it is a lost opportunity to earn a fee. The flip side is that you also cannot be taxed on a simulated gain you were never paid.

Is a payout taken as store credit taxable?

Section 61 does not require cash, and property or credits received for services are generally includible at fair market value, so the starting assumption is yes. What is genuinely unsettled is the amount to include when the credit can only be spent with the same company, and how to characterise a reported 10% boost. Keep the face value, the boost, the date and what you spent it on, and have a specialist take a position.

Do I owe self-employment tax on funded perp payouts?

If the activity is carried on as a trade or business, yes, typically 15.3% on net profit in addition to income tax: 12.4% Social Security up to the 2026 wage base of $184,500 and 2.9% Medicare with no cap. Whether the activity reaches trade-or-business status is a facts-and-circumstances question, and it is the same question that governs whether your evaluation fees are deductible.

Are MyFundedPerps evaluation and reset fees deductible?

Generally yes under IRC Section 162 once the trading business is actually underway, including attempts that failed. The case that differs is a trader who has never been funded and has no payout history, where the fees may instead be start-up expenditures under Section 195. We do not describe these fees as 100% deductible; that wording was retired as overstated in October 2026.

What name will my tax form be under?

Possibly not the one you signed up with. The product is reported to be owned and operated by Funding Perpetuals Holdings, Inc., doing business as MyFundedPerpetuals, and it was originally announced as Funding Perpetuals. Search for all three names plus the payment rail, and check the processor portal rather than only email, because a form sitting unread in a dashboard is still a form the IRS received.

What records matter most for a funded perp account?

Gross payout amounts rather than only the net received, every fee including failed attempts, the request and settlement date of each payout, which entity collected your W-9, and platform statements exported while you still have access. A simulated account's history exists only on the firm's systems, and access to a closed account is not guaranteed.