16 years of Song A Day pfp
16 years of Song A Day
@jmann.eth
ONLY 5 DAYS UNTIL SONG A DAY 6000!!! Today I'm sharing the story: HOW I MADE $3 MILLION IN ONE HOUR... THEN LOST IT ALL AND OWED THE IRS $1.1 MILLION I DIDN'T HAVE Welcome to my Crypto Tax Nightmare. Buckle up, it's wild ride. 🧵👇
3 replies
11 recasts
40 reactions
16 years of Song A Day pfp
16 years of Song A Day
@jmann.eth
January 1st, 2022. I sold 13 years worth of Song A Day NFTs. 4,000 songs. 1,600 collectors. ONE HOUR. THREE. MILLION. DOLLARS. My wife and I sat in her childhood bedroom, staring at the screen. We couldn't speak. It felt like winning the lottery. (Spoiler: It wasn't)
1 reply
0 recast
3 reactions
16 years of Song A Day pfp
16 years of Song A Day
@jmann.eth
Here's what's painfully obvious now: WE SHOULD HAVE SOLD THE ETH IMMEDIATELY. We didn't. One week later, ETH dropped below $3k for the first time in 5 months. We watched our $3 million start melting away. We were paralyzed. Couldn't bring ourselves to sell. Clinging to ETH for dear life. This was mistake #1.
1 reply
0 recast
3 reactions
16 years of Song A Day pfp
16 years of Song A Day
@jmann.eth
Quick crypto tax lesson that might save your life: BUY ETH → Goes up → Sell = Capital gains tax (on the profit) **EARN** ETH → It's income tax on the FULL VALUE when you got it Doesn't matter if ETH crashes after. You still owe on the original price. I earned at $3,754. I owed tax on $3,754. Even when it hit $1,000.
1 reply
0 recast
3 reactions
16 years of Song A Day pfp
16 years of Song A Day
@jmann.eth
Plot twist: 2021 had already been insane. Between @thefuckintrolls and airdrops (I'm looking at you @ensdomains, @ConstitutionDAO, @SuperRare, Adventure Loot, etc), we: - paid $600k in taxes - STILL OWED $400k more! ETH was crashing Bills were due So we made mistake #2...
1 reply
0 recast
2 reactions
16 years of Song A Day pfp
16 years of Song A Day
@jmann.eth
1 reply
0 recast
3 reactions
16 years of Song A Day pfp
16 years of Song A Day
@jmann.eth
We took out an AAVE loan. Put up 518 ETH as collateral (worth $1.5M at the time) Borrowed $400k to pay taxes About a week later Terra Luna imploded. I paid off the loan at the last second but... Our 518 ETH became 163 ETH. Worth ~$200k. $1.3 MILLION. GONE.
1 reply
0 recast
3 reactions
16 years of Song A Day pfp
16 years of Song A Day
@jmann.eth
Then came 3 years of hell. 2022, 2023, 2024: Endless Google Meets with my degen accountant. Line by line spreadsheets. Every extension filed. Every option explored. Final damage: $1,095,171.79 owed to the IRS. We didn't have it.
1 reply
0 recast
3 reactions
16 years of Song A Day pfp
16 years of Song A Day
@jmann.eth
We hired a tax attorney. We stalled. We tried EVERYTHING. But time ran out. "You have 60 days or we take everything: - Your house - Your retirement - Your NFTs - Everything." I had one option left. One I'd been DREADING...
1 reply
0 recast
3 reactions
16 years of Song A Day pfp
16 years of Song A Day
@jmann.eth
My Autoglyph 😭 Minted April 8th, 2019. (Day before my birthday) It cost $36. And this wasn't just an NFT. Matt Hall and John Watkinson (of Cryptopunks fame) had made something special. The day after the mint, I turned mine into music. John built a custom "glyph to midi" tool because of it. It was a piece of my soul from when 50 people knew what NFTs were. By 2024, it was worth over $1 million. https://x.com/digitallyrare/status/1115377973341884416
1 reply
0 recast
3 reactions