Business

Jeff Bezos will save over $600 million in taxes by moving from Seattle to Miami

Business

Published February 12, 2024, 12:37 PM ET

Billionaire Jeff Bezos’ recent move to Miami will help him save more than $600 million in taxes as he sells more than 50 million Amazon shares next year.

Bezos – the world’s second-richest person according to the Bloomberg Billionaires Index – last year gave up his long-standing residence in Seattle and bought a glittering estate on the ultra-exclusive Indian Creek Island, also known as the “Billionaire’s Bunker.”

Aside from benefits like better weather and proximity to his parents and rocket launches at his space company Blue Origin, the move came with another big benefit: no federal income or capital gains tax.

Last week, Bezos sold 12 million Amazon shares worth about $2 billion, saving about $140 million in capital gains taxes that he would have had to pay to Washington state, CNBC reported.

In 2022, Washington introduced the tax on sales of stocks or bonds of $250,000 or more.

Bezos saved $140 million in capital gains taxes after selling 12 million Amazon shares last week just by making Florida his primary residence. By 2025, he is expected to save over $600 million if he sells 50 million shares. AP

The 60-year-old plans to sell 50 million shares of the e-commerce giant by January 31, 2025, according to Securities and Exchange Commission filings.

According to CNBC’s calculations, that would be over $8.7 billion at today’s price, meaning Bezos stands to save at least $610 million on his entire stock sale.

The nine-figure figure assumes Amazon’s share price remains unchanged.

The stock is up more than 15% this year. If the stock continues to rise, the value of Bezos’ stock will rise along with his tax savings.

Until 2025, Bezos’ tax savings alone will cover the cost of Koru – the $500 million superyacht he bought last year, which is equipped with a helipad and a swimming pool spread across three decks.

In October, Bezos invested in this $79 million home in the Miami area’s “Billionaire Bunker,” an exclusive, man-made barrier island with 40 waterfront properties. Dina Goldentayer Real Estate Bezos’ latest property purchase includes seven bedrooms and 14 bathrooms in 19,064 square feet – and is adjacent to a $68 million mansion he purchased two months earlier. Dina Goldentayer Real Estate

Since Bezos announced his move to Miami, viewers have debated whether he wanted to forego paying higher taxes.

According to Rocket Mortgage, property taxes in the Sunshine State are 0.89% – less than Washington’s property tax rate of 0.98%, where he has lived for the past 30 years in a home less than 10 miles from Amazon’s headquarters in Seattle.

And in Washington, wealthy residents with assets of $2.193 million or more are also required to pay an estate tax of 10% to 20% upon their death.

If Bezos were to keep Seattle as his primary residence and maintain his current net worth of $200 billion, that would mean he would have to pay up to $40 billion in estate taxes upon his death.

Florida, on the other hand, does not impose an inheritance tax on residents regardless of asset size, nor does it impose taxes on capital gains.

Bezos’ projected tax savings of more than $600 million from his Amazon stock sale is enough to cover the cost of his $500 million superyacht Koru, which he is known to enjoy with his fiancée Lauren Sanchez.

Bezos bought a $79 million, seven-bedroom, 14-bathroom condo in Miami in October – two months after he bought the three-bedroom, three-bathroom home next door for $68 million.

After purchasing two of just 40 reported waterfront properties on the ultra-exclusive Indian Creek Island, Bezos reportedly plans to raze the $68 million property and build a single megamansion with the neighboring eight-figure enclave.

It was not immediately clear whether he also has plans to demolish the $79 million, 19,064-square-foot home, although he will certainly pay less in property taxes than at his previous primary residence in Seattle, where he carried out a similar demolition project the construction of a 5.3-acre property in the affluent neighborhood of Medina, Washington.

It also remains to be seen whether Bezos will sell his sprawling Washington estate, where two properties worth a combined $60 million were combined to build a 25,000-square-foot Tudor-style mansion, a second home, reports According to reports, it serves entirely as Bezos’ indoor office and features outdoor pools and waterfront access to Lake Washington.

Filed under Amazon, Billionaires, Celebrity Real Estate, CEOs, Jeff Bezos, Miami, Property Taxes, Seattle, Stock Market, Taxes, 02/12/24

Load More…

{{#isDisplay}} {{/isDisplay}}{{#isAniviewVideo}} {{/isAniviewVideo}}{{#isSRVideo}} {{/isSRVideo}}

https://nypost.com/2024/02/12/business/jeff-bezos-will-save-over-600m-in-taxes-in-seattle-miami-move/?utm_source=url_sitebuttons&utm_medium=site%20buttons&utm_campaign=site %20Buttons

Copy the URL to share

Source: nypost.com

Show More

Robert Wilson

Business & economics analyst. Breaking down intricate financial trends for informed decision-making.

Read Next

Back to top button