So I set my item to round to nearest 1, but the sub takeoff items dont round, these only show up on the report:

Is there a way to have these rounded? Or have the system take on the properties of the item?

In our upcoming update, there will be a feature to allow calculating the formula at the object level. I believe this will solve what you're after. Instead of rounding after it totals all linear objects, it would execute the formula and round separately for each object.
Thanks for the feature request, it looks like we are not far off from having it ready!