@brennas2 The IRS believes the a rental activity and a trade or business activity generally cannot be grouped (see the language in the link).
However, in a limited set of circumstances (perhaps the one you presented), the two activities can be grouped if they form an appropriate economic unit. The policy is almost exclusively designed to prevent the circumvention of the passive activity loss rules.
If you believe your rental and business form an appropriate economic unit, then you can certainly group them. You should be aware that the IRS can regroup them if they believe they do not form an appropriate economic unit and the primary purpose of the grouping was to avoid the passive loss rules.
