In 1986 Congress passed the Tax Reform Act of 1986 that imposed passive loss ($25,000 maximum) and income limitations ($100,000 maximum) for those that chose to invest in real estate. Over 22 years later, these same limitations are still on the books and have not been adjusted for inflation. The result is that investment real estate does not have the compelling tax incentives associated with it that it once did. By bringing this part of the tax code current, to reflect the value of today's dollar, we would be able to stimulate new demand for investment real estate.