- Jonathan Mann started uploading videos to YouTube under the alias “GameJew.”
- He later started his best-known project, “Song A Day,” which has been continuously operating since January 1, 2009.
- He made $3 Million through NFT’s before losing all the money to a market dip and excruciating tax.
Jonathan Mann, a musician known for his “Song A Day” project, recently revealed how his $3 million earnings from selling his entire song catalog as non-fungible tokens (NFTs) were wiped out by a severe market crash and a heavy tax burden.
Mann has since transformed his taxing experience into a new song that chronicles his financial struggles.
Mann began his crypto journey on January 1, 2022, by selling 3,700 songs as NFTs at $800 each, earning roughly $3 million in Ether (ETH).
However, a short while later, ETH dropped down rapidly, leaving Mann and his wife unsure of when and how much of their crypto assets to sell.
To add insult to injury, the Internal Revenue Service (IRS) imposed a substantial tax liability based on the ETH’s value at the time Mann received the payments, regardless of market declines.
“The income from my NFT sales was taxed as ordinary income, calculated at the ETH price at the time I received it,”
This meant that despite the later crash, he was still required to pay taxes on the full $3 million valuation.
After months of working closely with his accountant, Mann discovered they owed more than $1 million in taxes; specifically $1,095,171.79.
To cover this staggering IRS bill, Mann sold a rare Autoglyph NFT for $1.1 million.
Despite the financial setbacks, Mann remains committed to his music and the NFT space, continuing his daily songwriting and selling new songs as NFTs.
