The extra money in his pocket was way, way down on the list of the hedge fund manager's decision to don his flip-flops and zinc oxide full time.
Tax planning was a factor but not the main reason for Tepper’s decision to move, according to a person familiar with the situation. Family and quality-of-life considerations carried much more weight, as Tepper had recently separated from his wife in New Jersey and his mother and sister both live in Florida, said the person, asking for anonymity to discuss the billionaire’s personal affairs...As a New Jersey resident, Tepper would have to pay the 9 percent state tax upon reporting his deferred compensation in 2017 on top of a federal tax rate of 39.6 percent. Moving to Florida could at least eliminate the 9 percent tax. Because Appaloosa Management is now in Miami, the deferred fees that it receives in 2017 from the offshore funds will qualify as Florida-sourced income for tax purposes, Tuths said.