Condition with bad taste (5)
I believe the answer is:
state
'condition' is the definition.
(the state something is in)
'bad taste' is the wordplay.
'bad' is an anagram indicator.
'taste' with letters rearranged gives 'STATE'.
'with' acts as a link.
(Other definitions for state that I've seen before include "eg Iowa" , "Condition; nation" , "Declare: condition" , "Say; nation" , "eg Maine" .)