Carl Icahn’s decision to relocate his firm from NY to Miami could be a tax play
Icahn Enterprises’ decision to relocate could be a result of the SALT tax cap deduction
Carl Icahn is taking his talents to South Beach, and the SALT tax may be the reason for his fastbreak.
The billionaire investor and noted corporate raider is planning to move his investment firm from New York City to Miami, according to the New York Post.
The Trump administration’s 2017 tax overhaul capped the amount of state and local taxes that could be deducted at $10,000. Brokers and real estate professionals in Florida projected a large scale migration of hedge fund managers and investment professionals from high-tax states to South Florida. Icahn could be one of the first well-known investment managers to actually make the move.
Icahn told his staff if they won’t move to Miami he’ll lay them off without severance, according to a letter obtained by the Post. It said Icahn Enterprises will close offices in New York City and White Plains on March 31, and move to Miami the next day.
Icahn assured his staff that they will get paid at least their salary and bonus earned in 2019, according to the report. He also offered an additional $50,000 relocation payment if they establish residency in Florida. It is unclear how many employees would be eligible for that, and where the new offices are located.
The investment maven also has a home on Miami Beach’s ritzy Indian Creek Island. [NYP] — Keith Larsen