๐๐ฎ๐ฌ๐ข๐๐ข๐๐ง ๐๐๐๐ $๐๐ ๐ ๐ซ๐จ๐ฆ ๐๐ ๐๐ฌ โ ๐๐ก๐๐ง ๐๐จ๐ฌ๐ญ ๐๐ญ ๐๐ฅ๐ฅ ๐ญ๐จ ๐๐๐ฑ๐๐ฌ & ๐๐ซ๐ฒ๐ฉ๐ญ๐จ ๐๐ซ๐๐ฌ๐ก
๐ต Jonathan Mann, a musician who sold songs as NFTs, made $3 million in ETH in early 2022.
But due to crypto crash and taxes, he lost almost everything.
๐ฐ He Sold 3,700 Songs as NFTs for $3M
On Jan 1, 2022, Mann sold 3,700 songs at $800 each โ and earned $3M in ETH.
But instead of selling the ETH, he held it, hoping the price would go up.
There was no plan to handle taxes or risk.
โ ๏ธ ETH Crashed โ But Tax Bill Stayed High
ETH dropped in value soon after.
But the IRS still charged taxes based on ETHโs value when he got it, not later.
His tax bill: $1.1 million โ more than what he earned in the last 10 years combined.
๐ฅ Took a Crypto Loan โ Then Lost 300 ETH
To avoid selling low, Mann used Aave to borrow money with ETH as collateral.
Then the Terra crash caused his loan to be liquidated.
He lost 300 ETH โ a huge part of his earnings.
๐ผ๏ธ Rare NFT Helped Save Him
Mann sold a rare Autoglyph NFT for $1.1M to pay the IRS.
Because of his losses, he didnโt owe more tax on that sale.
He called the moment โbittersweet but necessary.โ
๐ถ Still Writing Music โ Still Believes in NFTs
Mann continues to make one song a day and sell them as NFTs.
Heโs hopeful heโll make it big again โ but this time, heโs learned his lesson.