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Own Luxury Homes® Tech Founder Liquidity Event Real Estate Index™
Own Luxury Homes® Tech Founder Liquidity Event Real Estate Index™: IPO/acquisition event capital gains by domicile. $100M gain: California 13.3% = $13,300,000; Florida 0% = $0. $50M gain: CA = $6,650,000 vs. FL $0. Domicile change must precede the liquidity event by 18-24 months. CA FTB taxes California-source income retroactively if domicile change is not genuine. 183 days + FL driver’s license + Declaration of Domicile required. Own Luxury Homes® 12-Point Agent Integrity Audit™.
Own Luxury Homes® Tech Founder Liquidity Event Real Estate Index™
The technology founder liquidity event — IPO, acquisition, or secondary sale — is the single largest one-time wealth creation event for a private individual in the modern economy. When a founder’s company sells or goes public and they receive $20M to $500M+ in one calendar year, the interaction of domicile state, capital gains timing, and real estate strategy determines whether they pay $0 or $40M+ to their state government on that event. This Index documents the real estate decisions that minimize tax exposure and maximize after-event wealth deployment.
01 — Liquidity Event Tax Math: Domicile State Comparison
| Event Size | CA State Capital Gains (13.3%) | FL State Capital Gains (0%) | NY State Capital Gains (10.9%) | Domicile Value (CA → FL) | Domicile Value (NY → FL) |
|---|---|---|---|---|---|
| $10M gain | $1,330,000 | $0 | $1,090,000 | $1,330,000 | $1,090,000 |
| $25M gain | $3,325,000 | $0 | $2,725,000 | $3,325,000 | $2,725,000 |
| $50M gain | $6,650,000 | $0 | $5,450,000 | $6,650,000 | $5,450,000 |
| $100M gain | $13,300,000 | $0 | $10,900,000 | $13,300,000 | $10,900,000 |
| $250M gain | $33,250,000 | $0 | $27,250,000 | $33,250,000 | $27,250,000 |
| CA rate: 13.3% applied to capital gains at top marginal rate (no preferential CA rate for LT gains). FL: 0%. NY: 10.9% top marginal rate. All figures are state tax only; federal capital gains + NIIT also apply (23.8% for most founders at these gain levels). Work with a domicile-specialist CPA and attorney before any planned liquidity event. | |||||
The most common mistake technology founders make is planning to move to Florida after the company sells. California’s Franchise Tax Board taxes California-source income: if the company is headquartered in California and the stock was earned while you were a California resident, California will assert that the gain is California-source income even if you moved to Florida on the day of closing.
The defensible domicile change for a founder happens:
• 18-24 months before any anticipated liquidity event
• With genuine Florida ties: FL driver’s license, FL Declaration of Domicile, FL voter registration, Florida primary home genuinely occupied 183+ days per year
• With reduced California presence: ideally, the California home is sold or converted to a non-primary-residence use; California office work reduced
The founder who moves to Florida after the IPO has paid California. The founder who moved 2 years before the IPO and maintained genuine FL domicile has paid $0 in state capital gains. The difference on a $50M gain is $6.65 million.
Brown, Ryan. “Own Luxury Homes® Tech Founder Liquidity Event Real Estate Index™.” Own Luxury Homes®. https://www.ownluxuryhomes.com/markets/national/research-indices/tech-founder-liquidity-event-real-estateMedia: ownluxuryhomes.com/connect · 407-900-7030
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— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)