First, rental property could be passive income (report on schedule E) or business income (report on schedule C). That is to say, rental could be an investment or a business.
How to classify rental property as a business or investment is a complicated matter. IRS claried that for QBI purpose, you need to satisfy:
Under the safe harbor, a “rental real estate enterprise” is treated as a trade or business for purposes of Sec. 199A if at least 250 hours of services are performed each tax year with respect to the enterprise. For rental real estate enterprises that have been in existence for at least four years, the 250-hour requirement will be met if, in any three of the five consecutive tax years that end with the tax year, 250 or more hours of rental services are performed per year for the rental real estate enterprise.
So if your activity in these two condos satisfy the 250 hours per year requirement, then you can claim QBI deduction.
