Sold a property in a different state with no capital gains

[je3nnn]

I live in California but last year sold a condo in Hawaii, for less than its cost basis (so no capital gain). Do I need to file taxes in Hawaii because of this, and will it affect my California taxes?

[Mike9241]

Did you receive a Form 1099-S from the closing agent for more than $250,000?
If you don't get a Form 1099-S, there is no reason to report the sale on your tax return.  if it was for more than $250,000 and you get a 1099-S report it. The IRS will likely send a notice and bill because it will assume the entire sales process was the gain (it assumes zero cost).  If you report it for federal you'll probably need to file in Hawaii though there would be no tax. You also have the option of not filing in Hawaii and waiting to see if they send you a notice. Then you will need to respond.  

the loss is not deductible so if you report it use adjustment code L

[Hal_Al]

It also depends on how the condo was used.  If as a primary or 2nd home (including vacation home), the other answer is good.

If used as a rental or investment property (no personal use), the capital loss may be deductible.  If a rental, there may (usually is) be depreciation recapture that results in a net capital gain, even though it was sold for less than the purchase amount.