The petitioner owned four rental properties with numerous rental units and was the landlord and maintained them. He also owned an eight-acre tract that he was developing into a a family amusement center. The petitioner did not keep a contemporaneous log of his involvement in the rental activities and later tried to reconstruct his activity. In 2008 and 2009, he claimed a real estate loss of $35,755 and $40,969 respectively. The IRS disallowed all but $852 of the loss deductions. The court agreed with the IRS because the petitioner failed to substantiate his activities so as to satisfy the material participation tests. The petitioner also did not satisfy the real estate professional exception for failure to make the required election under I.R.C. Sec. 469(c)(7) to aggregate all of his rental activities for purposes of the 750-hour test. The petitioner also did not qualify for the fall-back active participation test because he was phased-out of the $25,000 deduction due to sufficiently high income. An accuracy-related penalty was not imposed. Billeci v. Comr., T.C. Sum. Op. 2014-38.