The Real Deal Miami

Fund managers are feelin’ Florida

Big-money players are ditching New York after changes to tax law
June 04, 2018 02:00PM

Miami skyline (Credit: Wikipedia, Pixabay)

Florida is attracting Wall Street power players from New York and Connecticut, after the recent federal tax overhaul capped the amount of state and local deductions by individuals.

The Sunshine State’s zero income tax and low property taxes were always a lure, but Northeast hedge fund managers and the like resisted moving in the past because they could write off their state and local taxes on their federal returns. But the new federal tax reforms passed late last year capped those personal income tax deductions at a maximum $10,000.

The new cap includes property taxes, according to Bloomberg, and since Northeast states have some of the highest in the country, Florida has become an increasingly attractive option.

The changes could prompt industry leaders to move south, then bring their firms with them, according to the report.

Florida gained 14,700 jobs in the financial activities category, which includes bank workers, over the 12 months ending in April compared to Connecticut’s loss of 500 over that period.

Mark Pateman, a managing partners at Cushman & Wakefield’s West Palm Beach office said that monthly tours for office space have tripled since the tax law was passed in late December. Some firms are starting with satellite offices. [Bloomberg] — Dennis Lynch