Yes, you can generally treat all residential rental properties as a single combined business for tax purposes, but it depends on management and reporting.
- The IRS allows grouping if properties are operated similarly. Different property managers and differing states don't disqualify aggregation, but you must show a common business purpose and active participation in decision-making.
- You can aggregate your properties for the Qualified Business Income (QBI) deduction under Section 199A, which simplifies reporting and maximizes deductions.
- To avoid passive activity loss limitations, qualify as a real estate professional and meet material participation requirements.
For more detailed information, you can visit the IRS page on rental income and the TurboTax guide on rental properties.
