How to force the Outlook rule to be server-side?

Problem

Using Outlook 2010 with a corporate Exchange Server. The rule I want to create is this: After rule arrives from and with in the subject Move it to the folder and mark it . When I did that, the Outlook marked the rule as Client-Side. So I removed the part about marking it Read and it became a server side rule. So I thought, ok, maybe marking an email as read is a client-side only activity. So I sent myself an email, closed Outlook, opened the email on my iPhone (thus marking it read). Then I opened the Outlook again and the email was already marked read. So clearly marking emails read can be a server-side activity. So why is my rule being shoved client-side?