When billionaire Jeff Bezos announced his plan to move from Seattle to Miami, many speculated that his decision was primarily motivated by taxes. While Bezos stated that he wanted to be closer to his parents and his space company Blue Origin, the timing of his move raised eyebrows. In 2022, Washington state introduced a new capital gains tax on stock sales over $250,000, marking the first time Bezos would face state taxes on his substantial stock holdings. By relocating to Florida, a state with no personal income tax or tax on capital gains, Bezos would be able to save a significant amount of money on his stock sales.
Prior to the implementation of Washington’s capital gains tax, Bezos regularly sold billions of dollars’ worth of Amazon shares to fund various ventures, including philanthropy, Blue Origin, and extravagant personal purchases. However, in 2022, he decided to halt all stock sales, likely in anticipation of the new tax. Throughout the years, Bezos accumulated a substantial fortune through the sale of his Amazon shares, but he refrained from selling any in 2022 and 2023, gifting only $200 million worth of shares at the end of last year.
Following his relocation to Miami, Bezos wasted no time in resuming his stock-selling activities. The recent filing with the Securities and Exchange Commission (SEC) revealed that he initiated a pre-scheduled plan to unload 50 million shares of Amazon before January 31, 2025. At today’s market price, this amounts to a staggering $8.7 billion. By strategically timing his stock sales, Bezos ensures that he maximizes his tax savings, thanks to Florida’s tax-friendly regulations.
On his $2 billion stock sale last week, Bezos managed to avoid paying approximately $140 million in state taxes he would have owed had he remained in Washington. Looking ahead, as he gradually sells the remaining 50 million shares, he is expected to save at least $610 million in state taxes. It’s important to note that these estimates assume Amazon shares remain stagnant; if they continue to rise, Bezos’ tax savings will increase accordingly. In essence, Bezos’ tax savings from moving to Florida have not only covered the cost of his $417-foot yacht, but also contributed significantly to his growing collection of luxury properties in Miami.
With his newfound tax savings, Bezos has wasted no time in investing in Miami’s high-end real estate market. He recently acquired two mansions in Indian Creek for a staggering $147 million and is reportedly eyeing three more properties on the island. Indian Creek boasts a prestigious neighborhood, attracting other prominent figures such as Tom Brady and Carl Icahn. It is speculated that Bezos plans to demolish these existing homes and build a new, lavish estate with an estimated total cost exceeding $200 million.
Jeff Bezos’ move from Seattle to Miami is undoubtedly advantageous from a tax perspective. By relocating to Florida, Bezos avoids paying considerable state taxes on his stock sales, potentially saving hundreds of millions of dollars. As he continues to cash in his Amazon shares, his tax savings are likely to accumulate even further. Additionally, Bezos has been able to indulge in luxury real estate purchases, further solidifying his presence in Miami’s upscale market.
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