Big Gains, Bigger Tax Bill

On Jan. 1, 2022, Mann sold 3,700 songs for about $3 million in ETH. Expecting prices to rise, he held the tokens instead of selling. When ETH dropped and IRS demanded $1.1M in taxes based on the original value, panic set in.

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Trying to avoid selling at a loss, Mann borrowed against his ETH via Aave — but the Terra collapse triggered a cascade that liquidated his collateral. He lost 300 ETH instantly.

Rare NFT Saves the Day

With the IRS looming, Mann sold a rare Autoglyph NFT for $1.1 million to cover the tax debt. Thanks to his prior losses, the sale triggered no capital gains tax.

Now, Mann is back to writing daily songs and minting NFTs, still hopeful for a second chance at crypto success.

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