So I have two rental properties in different States. One had a gain (Delaware), the other had a loss (Maryland). I actively participated in managing them. The Loss was larger that the gain so overall I had a net loss. I live in a third State (Pennsylvania). I have no other income in Maryland or Delaware.
I need to file in both States, plus my home State. I know I do the non-resident forms in both of the States with the rental properties first. Even though I have a net loss, do I pay taxes on the full amount of the gain in Delaware? Do I document the full loss for second property in Maryland by filing a return with them. Or do I report the same net loss to both States?
Please advise since I've never had this situation before. Thanks
