Read this first
This is general education, not tax advice. Tax rules change and depend on your situation. Talk to a qualified tax professional before filing.
Your trades are reported by your broker
Copied trades happen in your own brokerage account, so your broker reports them to you and the IRS on its usual year-end tax forms, the same as trades you place yourself. CNKTID does not issue tax forms for your trades.
Short-term gains and SPX options
Gains on positions held a year or less are generally taxed as short-term gains. Many copied option trades are short-term.
Broad index options such as SPX are often treated as Section 1256 contracts, which are generally taxed 60% long-term and 40% short-term regardless of holding period. Ask your tax professional whether this applies to you.
Performance fees
Whether the performance fees you pay can be deducted depends on current law and your circumstances. Keep your monthly CNKTID statements: they show each fee and the profit it was based on.
Retirement accounts
Trades inside an IRA are generally not taxed year by year, but fees paid from outside the account and contribution rules have their own considerations. Ask before you start.