The petitioners, a married couple, each worked full time at their respective jobs and also owned rental properties. However, the evidence demonstrated that they did not work more in their rental activities than they did in their non-rental activities. Thus, I.R.C. Sec. 469(c)(7)(B) was not satisfied. The fallback test of active participation allowing up to $25,000 in annual losses from rental real estate activities to be deducted was also not available because petitioners income exceeded $150,000. Passive losses were not deductible. An accuracy-related penalty was not imposed because the petitioners had reasonable cause with respect to the underpayment. Alfaro v. Comr., T.C. Sum. Op. 2014-54.