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Amazon CEO Jeff Bezos sold more than $1B worth of stock this week

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Re: Amazon CEO Jeff Bezos sold more than $1B worth of stock this week

#11

Post by hkmurakami »

jamestimmins wrote: post #10
adventured wrote: post #7

$94.6 billion net worth at present per Bloomberg. I know he is basically guaranteed to be running all of these sales off a sale schedule set far in advance for obvious reasons. However, I'd probably be doubling up those $1 billion sales until/unless this market gives out. Raising $6 or $10 billion - enough to fund Blue Origin for maybe a decade - by selling out of a $94 billion base, sure beats doing the same out of…

A $68 billion increase in net worth in 33 months must be some kind of record.

Well in real terms Bill Gates in the dot-com era might still have the edge.

Re: Amazon CEO Jeff Bezos sold more than $1B worth of stock this week

#12

Post by jbusma »

clarkevans wrote: post #6
fataliss wrote: post #3

That tax season will hurt!

The taxes (what, 20% capital gains?) seems an excellent deal for the ecosystem where he grew his company: a stable political system, strong asset protection enforced by strict laws, an educated workforce in a relatively unpolluted environment, etc.

Looking up Bezos' salary data, I'm wondering why chose to take a salary of ~$81,840

If he was under the $37,950 mark, his Long Term Capital Gains rate would have been 0%

Re: Amazon CEO Jeff Bezos sold more than $1B worth of stock this week

#13

Post by beardicus »

tyingq wrote: post #9
loeg wrote: post #8

Earlier quoted context omitted.

20% capital gains rate + 3.8% NIIT to the federal government. (And another 7.9% to WA under governor Inslee's December 2016 proposal — which, to be clear, has not actually become law.)

Is that all though? I'm guessing that plus whatever regular income tax for his bracket is...which is higher than all that combined. Edit: Why downvote a question? I appreciate the answers, and suspect I'm not the only interested party.

> I assume that plus whatever regular income tax for his bracket is

No. Capital gains aren't income.

Re: Amazon CEO Jeff Bezos sold more than $1B worth of stock this week

#14

Post by hkmurakami »

tyingq wrote: post #9
loeg wrote: post #8

Earlier quoted context omitted.

20% capital gains rate + 3.8% NIIT to the federal government. (And another 7.9% to WA under governor Inslee's December 2016 proposal — which, to be clear, has not actually become law.)

Is that all though? I'm guessing that plus whatever regular income tax for his bracket is...which is higher than all that combined. Edit: Why downvote a question? I appreciate the answers, and suspect I'm not the only interested party.

It's long term capital gains and does not get taxed at ordinary income rates. If you are in a state with income tax, they will usually tax your capital gains at your ordinary state income tax bracket.

Re: Amazon CEO Jeff Bezos sold more than $1B worth of stock this week

#15

Post by jbusma »

tyingq wrote: post #9
loeg wrote: post #8

Earlier quoted context omitted.

20% capital gains rate + 3.8% NIIT to the federal government. (And another 7.9% to WA under governor Inslee's December 2016 proposal — which, to be clear, has not actually become law.)

Is that all though? I'm guessing that plus whatever regular income tax for his bracket is...which is higher than all that combined. Edit: Why downvote a question? I appreciate the answers, and suspect I'm not the only interested party.

Provided the security/asset is held for a year or more, it is taxed as Long-Term Capital Gains, and given quite the tax break.

It is even possible to pay 0% federal rate on sale of stock, I did it on my 2016 return.

Re: Amazon CEO Jeff Bezos sold more than $1B worth of stock this week

#16

Post by adventured »

hkmurakami wrote: post #11
jamestimmins wrote: post #10

Earlier quoted context omitted.

A $68 billion increase in net worth in 33 months must be some kind of record.

Well in real terms Bill Gates in the dot-com era might still have the edge.

Gates went from $10 billion to ~$78 billion ($68b gain; he topped out near $100b around Dec 1999) in about four years from mid 1994 to mid 1998. With an inflation adjustment, it's probably in his favor or very close.

Masayoshi Son went from around $2 billion in early 1995, to $77 billion by the peak in late 1999 / early 2000 or so.

Yasumitsu Shigeta was worth $42 billion briefly in February 2000, up from $1 billion a year earlier. Then basically lost it all just as fast. For just a one year gain, he might hold the record (Bezos is up $29 billion year to date).

Re: Amazon CEO Jeff Bezos sold more than $1B worth of stock this week

#17

Post by jjeaff »

jbusma wrote: post #12
clarkevans wrote: post #6

Earlier quoted context omitted.

The taxes (what, 20% capital gains?) seems an excellent deal for the ecosystem where he grew his company: a stable political system, strong asset protection enforced by strict laws, an educated workforce in a relatively unpolluted environment, etc.

Looking up Bezos' salary data, I'm wondering why chose to take a salary of ~$81,840 If he was under the $37,950 mark, his Long Term Capital Gains rate would have been 0%

That's not how it works. The capital gains themselves count toward the $37k cap. $1B in cap gains puts him a bit out of range to fall under the $37k max.

Re: Amazon CEO Jeff Bezos sold more than $1B worth of stock this week

#19

Post by jjeaff »

jbusma wrote: post #12
clarkevans wrote: post #6

Earlier quoted context omitted.

The taxes (what, 20% capital gains?) seems an excellent deal for the ecosystem where he grew his company: a stable political system, strong asset protection enforced by strict laws, an educated workforce in a relatively unpolluted environment, etc.

Looking up Bezos' salary data, I'm wondering why chose to take a salary of ~$81,840 If he was under the $37,950 mark, his Long Term Capital Gains rate would have been 0%

Also, he likely received tens of millions of dollars in company stock, which will be taxed at regular income rates, not capital gains.

Re: Amazon CEO Jeff Bezos sold more than $1B worth of stock this week

#20

Post by [deleted] »

adventured wrote: post #16
hkmurakami wrote: post #11

Earlier quoted context omitted.

Well in real terms Bill Gates in the dot-com era might still have the edge.

Gates went from $10 billion to ~$78 billion ($68b gain; he topped out near $100b around Dec 1999) in about four years from mid 1994 to mid 1998. With an inflation adjustment, it's probably in his favor or very close. Masayoshi Son went from around $2 billion in early 1995, to $77 billion by the peak in late 1999 / early 2000 or so. Yasumitsu Shigeta was worth $42 billion briefly in February 2000, up from $1 billion a…

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