NFT unmissable symbol, Jonathan Man, the musician behind the “Song” project, turned his tax coding into a warning musical tale.
In a new joint track on X, Man recovered how $ 3 million to sell all the Kattal as NFTS, just to see him fading with the market collapse during the Terra Ecosystem system.
“This is the story of how I made three million dollars and lost it,” sings Man. “And how you owe taxes more money than you earned in 10 previous years.”
Music condemns $ 1.1 million in NFT sales
Man said that everything started on January 1, 2022, when he sold 3,700 songs at a price of 800 dollars each, and hit it by about 3 million dollars – all of this in Ether (ETH).
Enthusiastic but not ready, Man and his wife decided to stick to the encryption, hoping to increase ETH prices. “We did not have a plan,” Man admitted to the song.
Things took a turn when the value of ETH decreased in January 2022, and the couple was not sure of the amount of the sale or when. To add to their problems, the American internal revenue service (IRS) that touched their door.
As Man explained in the song, taxes are imposed on NFTS profits as an income. This means that the tax is based on the value of the ETH upon receipt, regardless of whether the encryption assets later disrupt the value. For this reason, although its price of $ 3 million decreased, their tax bill has remained the same.
To avoid the sale of encryption in a loss, Man said they got a loan through the lending protocol, using some ETH as a guarantee. But the disaster was struck when the market began to collapse, driven by the collapse of Terra.
The accident sparked a series of qualifiers across the ecosystem, which included a Man loan. In flash, 300 ETH disappeared. “The life of work is erased in a moment,” he regretted.
Stranging to find a way out, spent months in combing transactions with his accounting to determine the amount due – they discovered that it was 1095171.79 dollars.
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Autoglyph Nft saves today
With the threat of potential privileges on their home and the risks of losing a retirement account for his wife, Man turned into a last option: selling the rare NFT Autoglyph that was bought again on the first Crypto days.
The musician said he tried to sell NFT through X but did not get a good reception. However, he found a mediator with a $ 1.1 million customer for NFT. Man said that before the deal to pay the Tax Authority taxes.
Because of the losses in the AAVE loan, Man was not owed by taxes on capital gains on the sale of Autoglyph. “I felt the bitterness to do,” he sings in the end.
Despite this ordeal, Man continues to write daily songs and sell them as NFTS, and still hopes to earn another $ 3 million.
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