The elimination of taxation on leveraged rental income is one, but keep in mind the tax impact in the IRA is nominal. 

@Scott LongVirginia will require you to report the rental income from the property in NY because as a Virginia resident, you are required to report world-wide incomeNew York will also require you to report the rental income because the rental property is located in NY.To avoid the "double-taxation", Virginia will provide you a credit for taxes paid(if any) to New York.You are able to withdraw money from the LLC to your personal account.

Boeing once had their headquarters in Seattle and determined that because Seattle abused the company by taxation and restrictions, Boeing moved to Chicago claiming that Chicago was the "center" of their market.

The FIRPTA Certification requires that if a selling party is a non-resident for purposes of U.S. income taxation, a portion of the sale is withheld.  

I don't want to pull $50k due to a huge taxation from a beneficiary account.

Pursuant to Section 3712 of the Revenue and Taxation Code, the tax deed conveys title to the purchaser free of all encumbrances of any kind existing before the sale, except:• Any lien for installments of taxes and special assessments, which installments will become payable upon the secured roll after the time of the sale.• The lien for taxes or assessments or other rights of any taxing agency that does not consent to the sale under this chapter.• Liens for special assessments levied upon the property conveyed which were, at the time of the sale, not included in the amount necessary to redeem the tax-defaulted property.• Unaccepted, recorded, irrevocable offers of dedication of the property to the public or a public entity for a public purpose, and recorded options of any taxing agency to purchase the property or any interest therein for a public purpose.Any federal Internal Revenue Service liens that, pursuant to provisions of federal law, are not discharged by the sale, even though the tax collector has provided proper notice to the Internal Revenue Service before that date....according to that, California tax sales doesn't seem pretty free and clear to me.

What is the best way to avoid heavy taxation?

The only way she could "benefit" from the deductions is if she had some income subject to taxation by the IRS.

If you are able to deduct it then the one receiving it must be subject to taxation here in the US.

ya know, noticed nobody here has mentioned that one of the reasons that gas is so high is because of the taxation on it.