- Jeff Bezos, the Founder of Amazon has recently sold a whopping $6 billion worth of Amazon shares.
- This huge sale happened after Bezos relocated from Washington to Miami, as the latter didn’t levy any capital gains taxes.
- Bezos could potentially save a staggering $600+ million in taxes on selling his 50 million Amazon shares in the upcoming months.
Jeff Bezos sells Amazon stocks
On 14th February, Jeff Bezos, Amazon’s Executive Chairman, and Former CEO, sold 24 million shares of the company, securing over $4 billion.
Two days later he sold an additional 12 million shares worth $2 billion, making the total sales in the past week exceed $6 billion.
Jeff Bezos announced last year to sell up to 50 million shares within the next year.
He has sold a total of 36 shares so far.
Zero capital gains tax in Miami
Bezos’ decision to move to Miami from Washington was announced right after the latter introduced capital gains tax.
A 7% tax would be applicable on the sale or exchange of stocks and other assets worth more than $250,000.
Relocating to Miami could save Bezos around $420 million in taxes from selling his 36 million shares.
US States with no such taxes
The capital gain tax refers to the tax imposed on the profits made from selling assets. It is applicable when ownership of an asset is transferred.
A majority of the US states impose a capital gains tax rate ranging from 2.9% to 13.3%. It is worth noting that each state can levy its tax rates.
The following 8 states don’t impose capital gains taxes, making them an attractive destination for High-net-worth individuals (HNWIs) and, ultra-high-net-worth individuals (UHNWIs).
- Alaska
- Florida
- Nevada
- New Hampshire
- South Dakota
- Tennessee
- Texas
- Wyoming
Unlike in the US, India has a uniform Capital Gains tax system.
Wrapping up…
As Jeff Bezos continues to offload billions of dollars worth of Amazon shares, his move to relocate from Washington to Florida highlights the significant impact of state tax policies on wealthy individuals like himself.
By leaving Washington, Bezos could potentially save around $600 million in taxes on his overall 50 million stock sales.
