- The billionaire Amazon founder bought two properties on Indian Creek Island
- Last week Bezos revealed he will sell 50 million Amazon shares in the next year
- By moving to Florida, Bezos has saved at least $610 million in taxes on the sale
Jeff Bezos’s move to Miami will help him save over $600 million in taxes over the next year, it has emerged.
The billionaire Amazon founder announced that he was leaving his longtime home in Seattle last year to move to Miami, buying two properties on the ultra-exclusive Indian Creek island dubbed ‘billionaires bunker.’
Bezos said the move was to be closer to his parents and rocket launches at his Blue Origin space company, but it also came with a major tax perk.
Florida has no state income tax or capital gains tax, while Washington introduced a 7 percent capital gains tax on sales of stocks or bonds of more than $250,000 in 2022.
Last week, it was revealed that Bezos had launched a pre-scheduled plan to sell 50 million Amazon shares before January 31, 2025. By moving to Florida, he has saved at least $610 million in taxes on this $8.7 billion sale, CNBC reported.
The billionaire Amazon founder (pictured with fiancée Lauren Sanchez) announced that he was leaving his longtime home in Seattle last year to move to Miami
By 2025, his Florida tax savings would cover the cost of Koru – the $500 million superyacht he bought last year.
The businessman, who is the second richest person in the world according to the Bloomberg Billionaires Index, filed a statement last week with federal regulators indicating an initial sale of nearly 12 million shares of Amazon stock.
He notified the US Securities and Exchange Commission (SEC) of the sale of 11,997,698 shares of common stock on February 7 and February 8 worth more than $2.04 billion.
On this sale alone, Bezos saved $140 million that he would have paid to Washington state, according to CNBC’s calculations.
Indian Creek island, overlooking Biscayne Bay, is famously known as ‘Billionaire Bunker’ thanks to its mega rich residents. Bezos’s move to Florida will help him save over $600 million in taxes over the next year, it has emerged.
Bezos bought a three-bedroom property on Indian Creek for $68 million in June last year
The Amazon founder also scooped up his neighbor’s mansion for $79 million in October 2023
The nine-figure sum that Bezos is projected to save on selling his stocks over the next year assumes Amazon’s share price remains flat at its current level.
Should the value of the shares continue to rise, his tax savings would also be even higher.
Amazon has seen its share price steadily rise over the last year.
The so-called ‘Magnificent 7’ tech stocks Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms and Tesla were responsible for the vast majority of the S&P 500’s 24 percent growth in 2023.
And at the start of this month, the retail giant reported it had raked in $170 billion in the final quarter of last year thanks to a boost in holiday season shopping.
Amazon’s financial results beat analysts’ expectations and sent shares soaring by more than 8 percent in after-hours trading on February 1.
Amazon – one of the so-called ‘Magnificent 7’ tech stocks – has seen its share price steadily rise over the last year
By 2025, Bezos’s Florida tax savings would cover the cost of Koru – the $500 million superyacht he bought last year – according to CNBC
Revenue in the fourth quarter rose by 14 percent compared to the same period last year. Analysts on average expected revenue of $166.21 billion, according to LSEG data.
Bezos has been selling billions of dollars’ worth of Amazon shares since 1998 to fund his philanthropy, his space company and, more recently, his superyacht and growing number of properties.
He stepped down from the role of Amazon CEO in 2021.
Bezos and his fiancée Lauren Sanchez own multiple properties on the island of Indian Creek, alongside retired NFL star Tom Brady and former First Daughter Ivanka Trump.
Bezos purchased two mansions for $147 million and is reportedly looking to buy a further three homes on the island.
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
