Most states and towns use a property tax to raise revenues. This tax actually predates the income tax. Each year the value of the property you own would decrease unless you replace it.
A corporation is not needed in order to deduct ordinary and necessary business expenses from revenues.
Yes. This will be the first year I've had "business revenues" in the form of rent collected on my 2nd house. I do plan to deduct the interest, taxes and maintenance costs from those revenues on my form C.