#CryptoFees101 Musician Jonathan Mann's NFT Earnings Impacted by Crypto Market and Tax Issues

According to Odaily, musician Jonathan Mann faced significant financial challenges after earning $3 million from NFT sales due to the cryptocurrency market crash and tax complications. In January 2022, Mann sold 3,700 songs as NFTs at $800 each, accumulating approximately $3 million in Ethereum (ETH). However, he did not convert the earnings promptly, and the subsequent decline in ETH's value led to a substantial tax liability. The U.S. Internal Revenue Service required him to pay taxes on the full income, amounting to $1.095 million.

To manage the tax burden, Mann used his ETH as collateral for loans through Aave. Unfortunately, the collapse of the Terra ecosystem triggered a series of liquidations, resulting in the loss of 300 ETH. Ultimately, Mann had to sell an Autoglyph NFT, which he had purchased earlier, for $1.1 million to cover the tax payment.