Moving Out of Country - Advice for structuring ownership for tax gains

[Jeffrey Miller]

Hello !

I live Brooklyn where I own my primary residence (2024), and 4 long term rental units in California I purchased between 2017 - 2021.

I’ve been asked to move abroad to London, and I’m wondering if there is any strategies to minimize tax on my US properties. 

Currently I just have good landlord / umbrella coverage on all the properties and don’t leverage any LLCs. However I get absolutely killed on a tax basis having long term rentals and earning a good W2 income. 

The California properties bring in about $8K / month, with mortgage / escrow / prop mgmt costing about $5k. Which is nice, but then comes income tax on the $8k at my personal rate killing most profitability. 

Now add on my primary unit in Brooklyn and I’ve really exhausted most tax deductions. 

I would love to keep my condo in Brooklyn and rent it out long term - and I could probably net even with mortgage + escrow. 

However, the income taxes totally kill the plan.

My question is this: Any one have insights for moving all properties into LLC and just pay pass thru taxes on the profit / loss ?

As I leave the country it would be great to have the business be self contained and make it possible to keep all my units.