Paul Singer’s Elliott Management Corp, a $41 billion hedge fund based in New York plans to temporarily lease space in West Palm Beach, as part of a larger move to bring its headquarters to Florida. Reported THE PALM BEACH POST.
The firm will sublease 7,600 square feet of space at The Phillips Point office, a twin-tower office complex at 777 S. Flagler Drive, overlooking the Intracoastal Waterway.
By establishing West Palm Beach as its headquarters, the firm will be able to escape New York’s high taxes, said Kelly Smallridge, president of the Business Development Board of Palm Beach County.
The move by the hedge fund giant is a coup for Palm Beach County, which has worked for the past eight years to lure financial firms from high-tax states in the Northeast.
The tax discrepancy between the northern states and Florida became even stronger after the 2018 TCJA. Before 2018, New Yorkers could still recover part of the state tax paid on the federal tax return (SALT). After 2018, with the advent of TCJA, there was a limitation on deducting a maximum of $ 10,000 annually. The amount may not greatly affect low- or middle-income taxpayers, but it certainly makes a huge difference for high-income individuals, which are searching for luxury real estate homes in Miami and central Florida to live.