Jeffrey Epstein was worth an estimated $559 million, yet may have paid little in the way of personal income taxes.
The now-deceased financier, accused of sexually assaulting and trafficking girls as young as 14, had more than $179 million in assets from real estate, including a New Mexico ranch, a home in Palm Beach, a residence in Paris and a private island in the U.S. Virgin Islands — Little St. James.
The Virgin Islands has its own system based on the tax laws and rates that apply in the U.S., according to the IRS, yet some tax-incentive programs there also make it possible for residents to reduce their federal income tax liability by as much as 90%.
“Epstein, if he didn’t spend more than 183 days in the U.S., could take advantage of being a resident in the Virgin Islands and possibly reduced his tax liability,” said Timothy Speiss, a CPA and partner in the personal wealth advisors practice of EisnerAmper LLP.
Claiming residency in a low- or no-tax jurisdiction typically means spending 183 days a year there, for starters, and, according to reports, Epstein changed his residence to his Virgin Islands estate nearly a decade ago.
If there’s one thing rich people like, it’s saving on taxes.
More often, high-income residents in high-tax states such as New York and New Jersey consider moving to an income tax-free haven such as Florida for just that reason.
Similarly, it takes six months and one day to establish residency in Florida, where there are also zero taxes on Social Security and retirement income. Meanwhile, New Yorkers are paying some of the heftiest state income taxes nationwide. Consider that the top income tax rate in New York is 8.82% and combined New York City and state taxes are about 12.7%. – READ MORE