question on rental income

i have a second home, basically instead of selling it, i rent it out just to have the mortgage paid. i pay the mortgage based on my income that is already taxed, however at the end of the year, i get a 1099 for rental income that i have to pay taxes on all over again. the way the rental is setup, i basically break even with the income matching exactly what my mortgage and taxes are.

just wondering if anyone had any thoughts, ideas or comments on this... i just think its pretty messed up....

Who sends you a 1099? This should be fairly straightforward.
1. You collect rent.
2. You pay mortgage, taxes, bills related to property.
3. On your tax return you deduct mortgage interest, taxes, bills relating to propery.
4. You deduct house depreciation.
5. You deduct portion of initial loan cost fees.
5. Balance is either a negative or a positive. If it is positive, you pay income tax on that amount.