It is unusual for an individual to get both a w-2 and k-1 from the same partnership for the same year. The only time I've ever encounter such a situation in actual practice was a calendar year partnership that made employees partners during the year, so they got a w-2 for the time they were an employee and a k-1 for the rest of the year. I don't have an answer as to whether the hours you spent as an employee count towards the 500-hour requirement. I guess as a last resort I would rely on the k-1. if 14a is bank - no material participation.
(14a will always be blank if the business is rental real estate).
material participation matters
without it any income or losses (k-1) would be passive. Passive losses can only be used to offset passive income and passive income would offset passive losses. there are special rules for rental real estate activities
being also an employee would disqualify the partnership income/losses from qualifying for the QBI/199A pursuant to reg 1.199A-5(d)(3)
