If it is entered as Government interest - it will automatically be adjusted from your state return. You don't have to do an adjustment.
I don't have anything on the K1(Form 1041) but Capital gains for the IRS. I have a page that says my adjustment for the state of NM should be - 2,000.00 Where should I enter it?
If you have capital gains on your federal return (from the K-1), you will come to a screen that asks for your total capital gains when you go through the NM state interview, see image attached. If you enter the full amount of your capital gains, the next screen will calculate your deduction. It is entered in the state interview, not the federal.