Tax on loss and gain

[Olga Daisel]

Folks,

I have rentals in 2 states which in total show negative. Now, the one in Illinois has a gain, but once again if I add loss from the others the total is negative.

Should I pay state tax on the one that shows positive even though the entire portfolio is at loss?

[Greg Scott]

State income taxes are usually based on the gain or loss from each state, so you pay taxes on your gain in Illinois.