The “Song a Day” project behind the project has turned his crypto tax into a careful music story by musician, non-fangbal token (NFT) artist Jonathan Mann.
In a new track shared on X, value Recalling How he sold his entire back catalog as NFTS by $ 3 million, only to see that it disappears because the market crashed during the collapse of the Terra ecosystem.
“This is the story of how I made three million dollars and lost it,” sing the value. “And how I paid more money to IRS in the last 10 years.”
The composer owes $ 1.1 million in taxes on NFT sale
Mann said that all of this started on January 1, 2022, when he sold 3,700 songs in $ 800, which he used to net in all Ether (Ath).
Encouraged but unprotected, Maan and his wife decided to hold a hold on Crypto, expecting ETH prices to rise. “We did not have a plan,” Maan admitted to the song.
In January 2022, things took a turn at the time of the decline in the price of Eth, and the couple was uncertain about how much to sell or when. To add to its crises, the US Internal Revenue Service (IRS) was knocking at their door.
As Maan explained in the song, selling NFT is taxed as income on their earnings. This means that the tax is based on the value of ETH when tax is obtained, even if the property of the crypto is later crashed into the value. Because of this, even though he went down at a price of $ 3 million in Ath, his tax bill remained the same.
To avoid selling his crypto in a disadvantage, Mann said that he took a loan through the borrowed protocol Aave, some Ethy used as collateral. But the market started crashing as a disaster, operated by Terra Fall.
The phenomenon triggered a waterfall of liquidation in the ecosystem, including the debt of the value. In a flash, 300 ETH disappeared. “A lifetime wiped into a moment,” he said.
To find a way, Mann spent months to combine through transactions with her accountant, to determine how out of how out of how they were outstanding – they came to know that it was $ 1,095,171.79.
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Rare Autoglife NFT saves day
With the risk of potential lies at his home and the risk of losing his wife’s retirement account, Mann moved to a final option: selling a rare autoglife NFT that he bought back in the early days of Crypto.
The composer said that he tried to sell NFT through X, but did not get a good reception. However, he found a broker with a customer who offered $ 1.1 million for NFT. Mann said that he accepted the deal to pay for IRS taxes.
Due to the damage in AAV loan, Mann did not pay capital gains taxes on autoglife sales. “It felt like it is very bitwatch to do so,” he sings at the end.
Despite the ordinance, the value continues to write daily songs and sell them as NFTS, yet it is expected that he will earn another $ 3 million one day.
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