When you are entering information about a property that has been converted from personal use to a rental property, be sure to check the box in the General Property Information section to indicate that it was Converted from personal use to a rental in 2018.
By doing so, you will be asked the proper questions necessary to set up the depreciation for the property. You will also be able to indicate the number of days that the property is used as a rental without considering the part of the year that the property was used as your residence. When asked about personal use of the property, you will only consider whether there was any personal use after the date it was converted to be a rental property. This will allow your expenses to allocate properly as well.
Making those changes should correct the situation that you were seeing that was not combining the total from both properties on your Schedule E.
Additionally, you would not need to indicate that the first property is part of a combined business. Typically, rental activities are considered passive activities and are not Qualified Business Income.
