Technology
Monday, February 12th, 2024 5:40 pm EDT
Key Points
- Jeff Bezos conducted a $2 billion stock sale without incurring any state taxes, leveraging Florida’s tax laws after relocating from Seattle to Miami.
- Bezos’ move was partly influenced by Washington state’s imposition of a 7% capital gains tax on stock sales exceeding $250,000, marking the first instance of him facing state taxes on stock transactions.
- After halting stock sales in 2022 and 2023 due to the new tax, Bezos resumed selling shares upon moving to Florida, where there are no state income taxes or taxes on capital gains. This move allowed him to save $140 million on the recent $2 billion sale and is estimated to save at least $610 million on the entire sale of 50 million shares over the next year.
Jeff Bezos’ recent $2 billion stock sale came with a notable advantage: he avoided state taxes altogether. Bezos, who announced his move from Seattle to Miami last year, cited reasons such as being closer to family and his space company Blue Origin. However, the timing also coincided with Washington state’s introduction of a 7% capital gains tax on stock sales exceeding $250,000, marking the first time Bezos would face state taxes on his stock transactions. Consequently, Bezos halted his stock sales in 2022 and 2023, a departure from his regular pattern of selling Amazon shares for over two decades to fund various ventures, including philanthropy, Blue Origin, and personal acquisitions like a mega yacht and multiple mansions.
After relocating to Florida, where there are no state income taxes or taxes on capital gains, Bezos resumed his stock sales. He initiated a pre-scheduled plan to sell 50 million shares before January 31, 2025, potentially amounting to over $8.7 billion. With Florida’s tax laws in his favor, Bezos saved $140 million on the $2 billion sale last week, a sum he would have owed to Washington state. Over the entire sale period, which spans a year, his tax savings are estimated to exceed $610 million, assuming Amazon stock prices remain stable. Considering potential appreciation in Amazon shares, Bezos’ tax savings could escalate further, effectively covering the costs of his lavish purchases, such as his 417-foot yacht named Koru and multimillion-dollar real estate acquisitions in Miami’s exclusive Indian Creek neighborhood, where he plans to build a new estate expected to surpass $200 million in total expenses.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/12/jeff-bezos-move-to-miami-will-save-him-over-600-million-in-taxes.html
