Bezos’ Strategic Move to Florida Saves Over $610 Million in State Taxes on Stock Sale

Bezos' Strategic Move to Florida Saves Over $610 Million in State Taxes on Stock Sale

Key Points:

  • Bezos’ recent $2 billion stock sale was strategically planned to minimize state taxes after relocating to Florida.
  • Washington state’s 7% capital gains tax prompted Bezos to cease stock sales in 2022.
  • The recent stock sale saved Bezos an estimated $140 million, with projected total savings exceeding $610 million.

Amazon founder Jeff Bezos’ recent $2 billion stock sale came with a significant financial benefit: no state taxes, thanks to his strategic relocation to Florida. Last year, Bezos, who had been a resident of Seattle for nearly 30 years, announced his move to Miami, citing proximity to family and Blue Origin’s rocket launches as reasons. However, the timing suggested another motive – taxes.

In 2022, Washington state introduced a new 7% capital gains tax on stock or bond sales exceeding $250,000, marking the first time Bezos would face state taxes on such transactions. To mitigate this, he refrained from selling Amazon stock in 2022 and 2023, a departure from his decades-long practice of selling shares annually to fund philanthropy, Blue Origin, and personal acquisitions.

The recent Securities and Exchange Commission (SEC) filing revealed that Bezos initiated a pre-scheduled stock-selling plan upon settling in Miami, aiming to unload 50 million shares before January 31, 2025. Given the current share price, this could total over $8.7 billion.

Bezos strategically chose Florida, which has no state income tax or capital gains tax, offering significant tax savings. On the $2 billion sale last week, he saved an estimated $140 million that would have gone to Washington state. Over the entire 50 million-share sale within the next year, his tax savings are projected to exceed $610 million, assuming Amazon shares remain stable. If share prices rise, the value of his shares and tax savings will increase accordingly.

These savings far surpass the costs of Bezos’ recent acquisitions, including two mansions in Indian Creek for $147 million. Reportedly eyeing additional properties on the island, Bezos is likely to build a new estate, with the total costs potentially exceeding $200 million.

Jeff Bezos’ relocation to Florida aligns with his personal and professional interests. It strategically minimizes state taxes’ impact on his substantial stock sales, underscoring the financial advantages of choosing tax-friendly jurisdictions for high-profile individuals.

TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

Read More

We are highly passionate and dedicated to delivering our readers the latest information and insights into technology innovation and trends. Our mission is to help understand industry professionals and enthusiasts about the complexities of technology and the latest advancements.

Follow Us

Advertise Here...

Build brand awareness across our network!