- Jonathan Mann sold his NFT music catalog for $3 million in Ether in January 2022.
- The value of his earnings dropped sharply after the crypto market decline and the Terra ecosystem collapse.
- Mann faced a tax bill of about $1.1 million based on the original value of his NFT sales, regardless of the loss in his crypto’s value.
- To cover the tax debt, Mann sold a rare Autoglyph NFT for $1.1 million.
- After resolving his IRS debt, Mann continues producing and selling music as NFTs.
Jonathan Mann, the artist behind the “Song A Day” music project, sold 3,700 songs as non-fungible tokens (NFTs) for approximately $3 million in Ether in January 2022. Mann and his wife chose to keep their cryptocurrency earnings, hoping the price would rise.
The couple did not initially make a plan for their crypto holdings. As the value of Ether dropped sharply amid the crash of the Terra ecosystem, their holdings lost substantial value. Despite the loss, the U.S. Internal Revenue Service (IRS) required Mann to pay taxes based on the value of ETH when he sold the NFTs, totaling roughly $1.1 million.
In his song, Mann said, “This is the story of how I made three million dollars and lost it. And how I owed the IRS more money than I made in 10 previous years.” After trying to avoid selling at a loss, Mann used the lending platform Aave to take out a loan against his ETH. As the crypto market continued to decline, a forced liquidation wiped out 300 ETH from his holdings. Mann recounted spending months reviewing transactions with his accountant before confirming the seven-figure tax bill.
Facing the risk of liens on his home and threats to his wife’s retirement account, Mann turned to one last asset: a rare Autoglyph NFT he had purchased earlier in his crypto career. Attempts to sell it privately were unsuccessful until he found a broker with a buyer willing to pay $1.1 million, enough to satisfy the IRS debt. Because of losses from his liquidated loan, Mann reported owing no capital gains tax from the Autoglyph sale.
Despite this financial setback, Mann continues to write daily songs and sell them as NFTs. He remains hopeful about the future, still working toward another major success. For more details, view Mann’s account of his experience on his X post.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Ether ETF Inflow Streak Nears $1B With 15-Day Run, ETH Up 31%
- Eric Trump: WLF to Buy Large Share of Official Trump Memecoin
- Gemini Files Confidential IPO Draft with SEC Amid Crypto Market Gains
- Judge Denies Crypto Groups’ Briefs in Samourai Wallet Case
- India Dismantles Call Center Scam Targeting Japanese Citizens
