I bought my second house this year at the end of July. I rent my first house out to my mother. I could use guidance on maximizing my tax return. Can someone please advise me on how I should be claiming (and on what form?) interest/taxes and rental income on both properties? I have done this in the past on my main home, but not sure how to do this properly, with the 2nd home now, which is not my primary residence. I also made improvements to the newest house immediately. Being that it is homesteaded, I imagine those are not deductable?
Also, I own them both in my name. I did not form a legal entity or LLC as a property management entity, or for the first property. Is this something I should look into even though I only own 2 properties at this point? Remember I am renting to my mom. (im implying liability is low). Is there any tax advantage for starting an entity for my first property?
Any help would be appreciated. I would like to save a couple hundred bucks by doing my taxes myself, and learn a thing or two as well. Besides the houses, I have no other businesses at this time, just w-2 income, so it should be fairly easy. Thank you in advance!