"Do I have to file a state of Oregon return."
Assuming you have a gain on sale that's greater than the amounts listed here:
http://www.oregon.gov/DOR/programs/individuals/Pages/file-requirements.aspx#part
then the answer is "Yes."
"What will happen with my CA return, it imports capital gain information from my federal return?
Can Turbo Tax handle the CA return? I don't want to pay in both states."
You will report the gain on sale in both states. The way you avoid being "double taxed" is by taking a tax credit on your California income tax return for the taxes paid to Oregon. Obviously you need to prepare your Oregon income tax return first reporting your "Oregon-sorced" income; presumably that's only the gain on sale of the condo.
Tom Young
