It didn't take long for Jeff Bezos, the world's second-richest man, to start cashing in on Amazon's stock rise earlier this year.
Less than two weeks after revealing plans to sell up to 50 million shares of the company he founded, Bezos sold 24 million shares worth more than $4 billion.
The sale took place over four business days, according to regulatory findings.
This is the first time Bezos has sold a stake in the world's largest online retailer since 2021.
Bezos hasn't explained why he's selling his Amazon stock now. But the timing of his trading plans may provide a clue.
He announced on November 2nd that he would be moving from the Seattle area to Miami. He adopted the so-called 10b5-1 plan on November 8th.
Washington state introduced a 7% capital gains tax in 2022, something Florida doesn't have, meaning Bezos' move will likely save him $288 million so far.
Since Mr. Bezos has only ever purchased one share of Amazon stock, it is safe to assume that he has owned the stock since the company's inception, and therefore essentially all of its value is considered a capital gain. Masu.
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Amazon shares rose 13% this year through Monday's close, the last day Bezos sold his shares, according to filings. It fell 2.2% to $168.64 on Tuesday.
The $288 million tax bill represents a sizable windfall for Washington, which collected $855 million in capital gains taxes last year, more than half of which came from just 10 people, state officials said. That's what it means.
Updated: February 14, 2024, 6:31 a.m.
