Last week, Jeff Bezos made headlines when he sold $2 billion worth of Amazon stock. However, what many may not realize is that this move also came with a significant tax advantage for the billionaire. In 2022, Washington state imposed a new 7% capital gains tax, which meant that Bezos would face state taxes on his stock sales for the first time. This, coupled with his desire to be closer to his parents and his rocket launches, was likely a contributing factor to his decision to leave Seattle after nearly 30 years and move to Miami.
One of the key reasons why Jeff Bezos chose Miami as his new home is the favorable tax climate in Florida. Unlike Washington state, Florida does not have a state income tax or a tax on capital gains. This means that Bezos can save a significant amount of money on his stock sales. In fact, on the recent $2 billion sale, Bezos saved $140 million that he would have had to pay in state taxes if he had remained in Washington.
The $2 billion stock sale last week is just the beginning for Bezos. A recent filing with the SEC revealed that he has a pre-scheduled stock-selling plan to unload 50 million shares before January 31, 2025. If Amazon shares remain flat, this would amount to more than $8.7 billion. However, thanks to Florida’s tax advantages, Bezos will save at least $610 million on this sale alone.
The tax savings on Bezos’ stock sales are not just a small percentage of his overall wealth, but they have significant implications for his future investments. As the value of his Amazon shares continues to rise, so does the potential for his tax savings. In fact, Bezos’ tax savings from his move to Miami have already more than paid for his purchase of a 417-foot yacht, with plenty more savings to spare.
Jeff Bezos is not only benefiting from tax savings; he is also making substantial real estate investments in Miami. He purchased two mansions in Indian Creek for a total of $147 million and is reportedly exploring three other properties on the island. Bezos plans to tear down the existing homes and build a new one, with the total cost of his new estate expected to exceed $200 million.
Jeff Bezos’ move to Miami not only brought him closer to family and his other ventures but also provided him with significant tax advantages. By avoiding Washington state’s capital gains tax, Bezos has saved millions of dollars on his recent stock sales. These tax savings, coupled with his ambitious real estate ventures, showcase Bezos’ astute financial decision-making and his ability to maximize his wealth. As Bezos continues to thrive in his new home, it will be interesting to see how these tax advantages impact his future investments and philanthropic endeavors.
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