Since you live in a Community Property State, the only reason I can think of for setting up a Qualified Joint Venture would be to fund both Social Security Accounts.
Social Security Accounts are funded by FICA taxes.
FICA Taxes are withheld and paid through the Employer for W-2 Employees and through Self-Employment taxes on the Individual Tax Return for the Self-Employed Taxpayer.
Schedule C income is EARNED INCOME and generates Self-Employment tax (which funds your Social Security Account)
Schedule E is PASSIVE INCOME. It does not generate Self-Employment tax, does not increase your Social Security Account nor add to earnings that your Social Security payment (when you start to draw) is based on.
If you PATICIPATE in the Airbnb, it would be a business (Schedule C) and COULD generate a loss.
If you hire a management company to deal with the day-to-day tasks of the Airbnb, it is a rental (Schedule E) and losses can only be claimed against the rental (or other passive) income. Passive loss can be carried over year to year. You would not be able to claim any rental expenses until the rental is AVAILABLE for rent.
Qualified Business Income (QBI) is a deduction that allows 20% of the profit to bypass tax.
There are certain businesses that do not qualify for the QBI.
Passive Rentals do not qualify.
A business which offers lodging DOES qualify.
If you are running a Joint Qualifying Venture as two schedule C's and they provide lodging, yes, you can combine them for the QBI, but if there is no profit, there is no QBI.
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