Jeff Bezos Capitalizes on $600 Million Tax Savings by Relocating to Miami

Last week’s $2 billion stock sale by Jeff Bezos came with a bonus: avoiding state taxes.

Emotional Farewell to Seattle

Illustration. Image by Depositphotos.com

Nearly a year ago, Bezos took to Instagram to announce his departure from Seattle, —an almost 30-year home—to relocate to Miami.

He cited being closer to family and Blue Origin’s rocket launches as reasons.

Family Ties or Tax Savings?

In a nostalgic Instagram post, accompanied by a vintage video of Amazon’s first office in Seattle, 60-year-old Bezos announced his departure from the city that birthed the e-commerce titan.

Love, Family, Space

The Miami-raised billionaire shared his decision to return to Florida, citing a desire to be near his parents who have recently moved back.

Bezos highlighted that Blue Origin’s activities are increasingly centered in Cape Canaveral, Florida, and expressed his and fiancée Lauren Sanchez’s ‘love’ for Miami.

‘A Piece of My Heart’

“Seattle has been my home since 1994 when I started Amazon out of my garage,” Bezos wrote.

“I’ve lived in Seattle longer than I’ve lived anywhere else and have so many amazing memories here. As exciting as the move is, it’s an emotional decision for me. Seattle, you will always have a piece of my heart.”

A Calculated Move?

Despite his emotional post last year, the timing suggests tax motives too.

In 2022, Washington state introduced a 7% capital gains tax on stock or bond sales over $250,000. As Washington doesn’t impose personal income tax, this was Bezos’ first potential state tax on stock sales.

Billion-Dollar Stock Sales

Since 1998, Bezos has regularly sold billions in Amazon stocks for over twenty years, supporting his philanthropic efforts, Blue Origin, his $500 million mega yacht, and acquiring numerous estates with fiancé Lauren Sanchez.

Stock Sales Freeze

When Washington’s capital gains tax came into effect in 2022, Bezos halted his Amazon stock sales, not selling any in 2022 or 2023, except for a $200 million share gift last year.

Move Triggers Major Sell-Off

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Following his Miami move, Bezos initiated an aggressive sell-off. According to an SEC filing, he’s set to sell 50 million shares by early 2025, valued at over $8.7 billion at current rates.

Tax Advantage for Bezos

Florida’s lack of state income or capital gains tax means significant savings for Bezos. Last week’s $2 billion sale alone spared him $140 million in potential Washington state taxes.

Savings Outweigh Yacht Costs

The total savings from selling 50 million shares could exceed $610 million, a figure that could grow if Amazon’s stock price increases.

This tax benefit alone effectively covers the cost of his 417-foot yacht, Koru.

Expanding Real Estate Empire

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Jeff Bezos is expanding his presence in Indian Creek, having bought two mansions for $147 million and showing interest in three more properties on the island, a neighborhood shared with Tom Brady and Carl Icahn.

Miami real estate agents speculate that Bezos plans to demolish these homes to construct a new estate, potentially costing over $200 million.

Amazon’s Humble Beginnings

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The nostalgic Instagram post from last year featured Bezos touring Amazon’s initial, humble office, a cramped space with just three desks littered with papers and a single large whiteboard, powered by an external cable cord for additional electricity.

Office Tour

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Bezos, with a smile, commented on the brief office tour, while a dog’s bark echoed in the background. His father, filming the scene, excitedly referred to it as “the nerve center!”

Lavish Buys

Bezos’ declaration last year occurred a mere two weeks following his acquisition of a lavish $79 million mansion in Florida’s elite “Billionaire Bunker” island, a purchase that came right after he secured a neighboring $68 million estate just two months prior.

Island of the Elites

This island also boasts high-profile residents like supermodel Adriana Lima, real estate giant Jeff Soffer, renowned singer-songwriter Julio Iglesias, and car dealership kingpin Norman Braman.