So I have two rental properties in different States. One had a gain, the other had a loss. I actively participated in managing them. The Loss was larger that the gain so overall I had a net loss.
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 the first State? Do I document the full loss for second property in the second State. Or do I report the same net loss to both States?
Please advise since I've never had this situation before. Thanks
