Amazonfounded bybezos(Jeff Bezos) sold $2 billion worth of shares last week, and it has an added benefit: He doesn’t have to pay state taxes.
Bezos announced on Instagram last year that he was moving from Seattle to Miami, where he had lived for nearly 30 years, because he wanted to be closer to his parents and his space rocket launch site, the CNBC website reported. Wanted to be close. Exploration company Blue Origin. near. But time also served another reason: paying taxes.
Seattle is locatedWashington StateA new tax regime will be implemented in 2022 that will impose a 7% capital gains tax on capital gains over $250,000 from the sale of stocks or bonds. Washington state does not impose a personal income tax, so the new tax arrangement marks the first time that Bezos will have to pay state tax on selling his stock.
Bezos has sold billions of dollars in Amazon stock almost every year for more than 20 years, starting in 1998, to fund his philanthropic venture, Blue Origin, a space company. Recently, Bezos spent US$500 million to build a luxury mega-yacht and bought back-to-back mansions with his fiancée Lauren Sanchez, which also required him to sell shares to raise funds.
In 2022, after Washington State’s new tax law took effect, Bezos stopped selling the stock. He didn’t sell any Amazon stock in 2022 or 2023, and donated just $200 million in stock at the end of last year.
But after moving to Miami, Bezos resumed selling his stock. Bezos launched a pre-arranged stock sale plan to sell 50 million shares by Jan. 31, 2025, according to a document filed with the Securities and Exchange Commission last week. Based on the stock price on the 12th, it is valued at more than US$8.7 billion.
Florida has no state income tax or capital gains tax, so Bezos sold $2 billion of shares last week, saving $140 million compared to living in Washington state; If he were to sell 50 million shares next year, he would save at least $610 million in capital gains taxes, and that assumes Amazon’s stock price remains stable. If Amazon’s stock price continues to rise, the tax savings will be even greater.
In other words, the tax savings from moving to Florida from Washington state are more than enough to pay for his 417-foot (127-meter) superyacht.
In addition, Bezos also spent US$147 million to buy two luxury homes on Indian Creek Island, known as “Billionaire Village”, and is still looking for three more luxury homes on the island. Other celebrities who have lived on the island include American football star Tom Brady and billionaire investor Carl Icahn. Miami real estate agents said Bezos could demolish the homes and build new ones, the total cost of which could exceed $200 million.