I own properties in 3 states - CO, OH and MI. If I have a net loss on all my properties combined by Michigan has a net positive income, do I still owe for MI?

I own properties in 3 states - CO, OH and MI.

On all properties combined in the 3 states, I am posting a net loss on my Schedule E.

However, for Michigan properties only, there is a combined (3 properties) net positive operating income.

So do I pay taxes to Michigan on that net positive then?

314

Level 15

Jun 3, 2019 1:47:29 PM

Yes. The losses, in the other states, do not reduce the Michigan source income. On your MI return, your report only MI source income and losses.

The exception is if you are a MI resident. As MI resident, you must report all your income, regardless of where earned, so all your income , and losses, go on your MI return.

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I own properties in 3 states - CO, OH and MI. If I have a net loss on all my properties combined by Michigan has a net positive income, do I still owe for MI?