No, you wouldn't combine the two rentals into a single activity for the scenario as described. The tax treatment of the two rental properties is based on their character as a short-term rental with substantial services rendered, and a long-term rental.
If your MAGI exceeds the limit to deduct up to $25,000 in passive losses from rentals, you won't be able to deduct losses on the long-term rental in the current year. The losses are "suspended" until such time as you qualify to take them or the property is sold.
Generally, you will file Schedule C for your short-term vacation rental if the average guest rents the property for fewer than 7 days or the average guest stay is fewer than 30 days AND you provide guests with “substantial services”. If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C.
A passive activity is any business activity in which you did not materially participate and any rental activity, except in certain circumstances such as for a qualified real estate professional.
Please see IRS Topic 414 and IRS Publication 527 for more information.
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