Do I have to pay Illinois state taxes on a gain from the sale of Illinois property if I have a larger federal carryover loss?

[carrollsta]

I have a IL K-1-P with a gain from property sold by a partnership in Illinois.I am a non-resident of Illinois. For federal taxes, I have (non-IL) carryover losses in excess of this gain, so I will not be paying federal capital gains taxes. Do I need to pay IL state taxes on the gain? TT is asking for the Illinois portion of the -3000 Federal Capital Gain.   Do I enter the full Illinois gain amount or $0?

[RichardK · Accepted solution]

Generally states that tax nonresidents for income associated with within that state do not allow offsets for out of state income. Therefore, you may have to report income from the sale of property located in Illinois, without applying losses from other states. However, in some cases IL does not require nonresidents to file a tax return, for example: if the partnership withheld IL taxes from the nonresident, click here for more information.