Unlimited tax deductions back in the days...

[Franklin Lee]

I heard from my dad that back 15 years ago when he was an active investor managing a rental business, he was allowed to take unlimited tax deductions...is this true?

Now, I know that you can only deduct up to 25,000, which can be a shame because I would like to manage more than 10 when I graduate from college. Now you can only manage 5 with the aid of the 25,000 passive losses limit.

One more thing...there is such things as being an active investor, passive investor, and real estate professional.

According to my knowledge, I believe that in order to be an active investor, you have to actively manage your properties thus giving you unlimited tax deductions. This is what I've heard from my parents. Please correct me if I'm wrong. I would like to be right though because this information would likely benefit the alter ego of mine - the landlord.