Now own 2 houses - doing taxes myself I think... need help

[Shane Johnson]

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!

[Kyle J.]

I guess I'm in the minority here, but I actually pay someone (tax attorney) to do my taxes and feel that he's worth every penny. Not only does he save me time (and usually money in the form of deductions I didn't know about), but he's also available to me throughout the year for any tax-related questions that come up. I consider him an invaluable resource to my investing.