I live in Il. but operate an Air BNB in MI. If the business operates at a loss do I need to file a MI state return?

[JamesG1]

The Michigan Department of Revenue says that you must file a return:

• If you owe tax,
• You are due a refund, or
• Your AGI exceeds your exemption allowance ($4,400).

You should also file a Michigan return if you file a federal return, even if you do not owe Michigan tax. This will eliminate unnecessary correspondence from Treasury. See Who Must File a Return (page 3).

A Michigan nonresident must use Schedule NR to figure Michigan taxable income. You must pay Michigan income tax on the following types of income:

• Salary, wages, and other employee compensation for work performed in Michigan, unless you live in a state covered by a reciprocal agreement (see “Reciprocal States”),
• Net rents and royalties from real and tangible personal property in Michigan.  See Nonresident (page 7).