Jeff Bezos' Miami move saved him $600 million

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‘So happy for him!’: Jeff Bezos’ Miami move may save him $600 million—ducking out of Seattle before new tax hit

The news had people rooting for nature to destroy Jeff Bezos

 

Marlon Ettinger

Tech

Posted on Feb 12, 2024

Amazon founder Jeff Bezos’ 2023 move to Miami from his longtime home base in Seattle is paying off—as it is soon going to save him around $600 million in taxes, reported CNBC on Monday. 

That news was reassuring to some people online, who sarcastically posted that they were that his fortune will remain intact.

“So happy for him! I was worried he wouldn’t be able to buy another island,” posted @toddkimmelman on X.

“Or yacht,” added KTLA Channel 5 reporter David Lazarus.

Bezos’ 417-foot custom luxury superyacht Koru reportedly cost around $500 million to build, according to Business Insider.

Last November, Bezos posted on Instagram announcing his move away from Seattle, where he built Amazon, citing a desire to be closer to his parents and his rocket company, Blue Origin.

But the move also came a year after Seattle passed a 7% capital gains tax on sales over $250,000. SEC filings show that Bezos regularly sells Amazon stock to fund his businesses, charities, and real estate portfolio, reported CNBC. And according to an SEC form filed last week, Bezos plans to sell Amazon stock worth almost $8.4 billion in the next year. 

A 7% capital gains tax on that sale would have cost him just under $600 million dollars—enough to buy another yacht.

Despite the tax savings, some posters dinged Bezos—and Florida—saying that while he might be saving money, living in Florida isn’t worth it.

“But he has to live in Florida,” pointed out @mrchrishain in response to the news.

“well good for him, I guess,” posted @DocLT2. “wait until the first cat 4 hurricane smashes his new FL estate then see how he feels.”

Since moving to Florida, Bezos bought a pair of mansions in Indian Creek, a village on a Miami-Dade County barrier island, for just under $150 million.

According to CNBC, he’s planning to tear them down and put $200 million into building a new property.

But Miami has the highest chance of being hit by a hurricane in the U.S., with about a 16% odds of getting walloped every year.

Fears over storms in the city have led homeowners insurance in the city to shoot up, with some people reporting jumps of over 60% year to year.

“We bought our home 9 years ago insurance was $2200 currently $8500,” posted one redditor in the r/Miami subreddit discussing the rising prices last year.

Bezos’ $600 million tax savings means he can probably afford it, but not everybody’s happy about that.

“How wonderful that he can save money while Floridians are seeing their homeowners insurance literally go through the roof or just flat out be cancelled because screw the little guy,” said @CocoPazzo back on X.

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*First Published: Feb 12, 2024, 3:35 pm CST