Jeff Bezos, the billionaire founder of Amazon, made headlines last week when it was revealed that he had sold $2 billion worth of his company’s stock. However, the real story behind the sale is the strategic move Bezos made to Miami, which allowed him to avoid paying state taxes on his stock sales. This move came after Washington state implemented a new capital gains tax in 2022, marking the first time Bezos would have to face state taxes on his stock sales. By relocating to Florida, which does not have a state income tax or capital gains tax, Bezos was able to save a significant amount of money on his recent stock sale.
Over the past two decades, Bezos had sold billions of dollars worth of Amazon shares to fund various projects such as his philanthropy efforts, Blue Origin (his space company), and personal indulgences like his $500 million mega yacht. However, with the implementation of the capital gains tax in Washington state, Bezos put a halt to his stock sales. This changed after his move to Miami, as Bezos recently launched a plan to sell 50 million shares before January 31, 2025. Based on current prices, this would amount to over $8.7 billion.
One of the main reasons Bezos chose to relocate to Miami was the lack of state income tax and capital gains tax in Florida. By selling his stocks in Florida, Bezos saved $140 million on his recent $2 billion sale, and he stands to save at least $610 million on the full sale of 50 million shares over the next year. These savings can increase even further if Amazon’s share prices continue to rise. In fact, with his tax savings alone, Bezos could easily cover the cost of his 417-foot yacht, Koru.
Aside from the tax benefits, Bezos’ move to Miami also allowed him to expand his real estate portfolio. He purchased two mansions in Indian Creek for a staggering $147 million and is reportedly eyeing three additional properties on the exclusive island. The combined cost of these investments is estimated to exceed $200 million. Furthermore, sources suggest that Bezos plans to tear down the existing homes and build a new estate in their place, further adding to his total expenses.
Jeff Bezos’ relocation to Miami not only provided him with substantial tax savings but also allowed him to further indulge in his personal interests, such as real estate investments. By strategically timing his stock sales and taking advantage of Florida’s tax-friendly policies, Bezos has secured significant financial benefits for himself. As he continues to expand his ventures and settle into his new Miami lifestyle, it is clear that Bezos has made shrewd decisions to maximize his wealth and minimize his tax liabilities.