Received a schedule K-1 and K-1-P since I'm out of state. I put the k-1 on my federal, do I need to file an additional state if I didnt make any money from partnership?

[vince-schaefer]

I'm in California and I'm a limited partner for a restaurant in Illinois. (own a small percentage)  The restaurant is new and is not profitable yet so my K-1 just shows a loss. This a passive loss as far as I understand since it's essentially from my initial investment.

Do I still need to file a state return for Illinois as well or only when/if the restaurant becomes profitable and I actually earn income from it?

I've heard I just need the k-1 on my federal and don't need to do state until I make money.

[KrisD]

No, with no positive income, you do not need to file for that state. The requirement to file once the Partnership realizes a profit depends on the state.