Since the property is in CA, you will have to file CA return as a Non-Resident and pay taxes on "in-state" income ( Capital gain tax ). AZ will tax you on world income as a resident and give you credit for taxes paid to another state. Note that generally in TurboTax, you should prepare the Non-Resident state first and then the resident state -- that way the credits for taxes would automatically flow to the resident state filing.
