tax advantage question

[Matt F.]

can someone give me a quick summary of the tax benefit to owning a rental prop?  i understand about using all the expenses to help offset the income generated by the property, then with depreciation, you may end up in a "paper loss" position for the year....which depending on your W2 income, may be deductible.   can any one expend on that or am i right in thinking thats pretty much it?  

also - can anyone expand on stepped up inheritance?