Elon Musk’s relocation from California to Texas has already helped save the world’s richest person a fortune in taxes. Now, after selling more than $8.5 billion of stock to help him buy Twitter Inc., it could help reduce another possibly hefty tax bill for the Tesla Inc. chief.
Musk potentially owes as much as $2 billion in federal capital gains levies if virtually all of the value of the sale represents an appreciation in value, according to calculations by Bloomberg. He would save as much as $1.1 billion on state taxes on that basis, thanks to his new home of Texas, which doesn’t tax income. The billionaire says he made the move in 2020.