I live in Oregon and sold land in New Mexico. Do I file a state return for both states? If so, file New Mexico tax return first, then Oregon? There is a $35k LTG.

[KrisD15]

Yes  

You will pay tax on the sale to the state of New Mexico and then get a credit for that tax paid on your Oregon return so that you are not taxed twice. 

Therefore please enter the New Mexico return first into the TurboTax program so the program can carry that amount to the Oregon return.

According to the state of New Mexico:

"New Mexico imposes a tax on the net income of every resident and on the net income of every nonresident employed or engaged in business in, into or from this state or deriving any income from any property or employment within this state."

[Hal_Al]

Q.   Do I file a state return for both states?

A. Yes.

Q. If so, prepare the  New Mexico tax return first, then Oregon?

A.  Yes.  OR will give you a credit, or partial credit, for the tax paid to NM.  So the NM tax needs to be calculated 1st. 

Caveat: My answer is based on the standard rule for almost all states. I am not specifically familiar with OR & NM.