Jeff Bezos will save over $600 million in taxes by moving to Miami

Jeff Bezos and Lauren Sanchez stroll in the Paddock prior to ultimate apply forward of the F1 Grand Prix of Miami at Miami International Autodrome on May 06, 2023 in Miami, Florida. 

Clive Mason | Formula 1 | Getty Images

Jeff Bezos’ $2 billion inventory sale final week got here with an added perk: no state taxes.

Last yr, Bezos introduced on Instagram that he was leaving Seattle after almost 30 years to transfer to Miami. He stated the transfer was to be nearer to his mother and father and his rocket launches at Blue Origin. The timing additionally instructed one more reason: taxes.

In 2022 Washington state imposed a brand new, 7% capital beneficial properties tax on gross sales of shares or bonds of greater than $250,000. Washington state does not have a private earnings tax, so the brand new levy marked the primary time Bezos would face state taxes on his inventory gross sales.

Starting in 1998 Bezos offered billions of {dollars} value of Amazon shares virtually yearly for greater than twenty years to fund his philanthropy, his area firm Blue Origin, and extra just lately his $500 million mega yacht and a rising assortment of mansions bought together with his fiancé Lauren Sanchez.

In 2022, when the tax took impact, Bezos stopped promoting. He did not promote any Amazon inventory in 2022 or 2023, gifting solely $200 million of shares on the finish of final yr.

After his transfer to Miami, Bezos made up for misplaced time. Last week, a submitting with the SEC revealed that Bezos launched a pre-scheduled stock-selling plan to unload 50 million shares earlier than Jan. 31, 2025. At at this time’s value, that might complete greater than $8.7 billion.

Florida has no state earnings tax or a tax on capital beneficial properties. So on the $2 billion sale final week, he saved $140 million that he would have paid to Washington state. On your entire sale of fifty million shares over the following yr, he will save not less than $610 million. And that is assuming Amazon shares stay flat. If they proceed to rise, the worth of his shares — and his tax financial savings — will be even increased.

Put one other means, he is greater than paid for his 417-foot yacht, Koru, with simply his Florida tax financial savings.

For his new digs, Bezos bought two mansions in Indian Creek for $147 million and is reportedly taking a look at three different properties on the island, which additionally counts Tom Brady and Carl Icahn as residents. Miami brokers say Bezos is probably going to tear down the houses and construct a brand new one, with the overall prices of the brand new property probably topping $200 million.

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