The petitioner was a licensed real estate appraiser and director of real estate valuation at two national CPA firms, but did not own an equity interest in either businesses. After getting married, the petitioner had three condominiums that he and his wife rented out. He claimed that he put in more than 750 hours in managing the rental activities and that he spent most of his time on rental activities, but did not provide any log to document his time. His wife had some notes, but nothing that carefully substantiated the time she spent on rental activities. However, she did construct an activity log after the IRS selected their return for audit. For the year at issue, the petitioner and spouse claimed about $40,000 in losses from the rental activity. The IRS denied the losses due to failure to satisfy the real estate professional exception to rents being passive. The court agreed, and noted that the petitioner's work for the CPA firms did not count toward the750-hr test because he didn't have an ownership interest in those businesses. The evidence also did not support the argument that petitioner's wife met the 750-hr requirement. The court upheld the imposition of an accuracy-related penalty. Calvanico v. Comr., T.C. Sum. Op. 2015-64.