NFT artist relives ‘crypto tax nightmare’ in new song
Jonathan Mann, an NFT artist, created a song detailing his financial struggles after selling his music catalog as NFTs for $3 million, only to face a significant tax bill. He sold 3,700 songs at $800 each in January 2022, receiving payment in Ether (ETH). When ETH's value dropped, Mann and his wife were unprepared for the tax implications, which required them to pay taxes based on the initial value of the ETH received. To avoid selling at a loss, they took a loan using ETH as collateral, but the market crash led to liquidations, resulting in a loss of 300 ETH. After months of calculations, they discovered they owed $1,095,171.79 in taxes. Mann sold a rare Autoglyph NFT for $1.1 million to settle the tax debt, avoiding capital gains taxes due to previous losses. He remains optimistic about future NFT sales and continues his daily music project.
