Sold OR property as CA resident - credit given to OR return, rather than CA return

[svBill]

I sold a residential property in Oregon as a California resident.  I filled out the OR return first and it said I owed tax in OR.  I then filled out my CA return and it gave me a credit on my OR taxes for CA taxes paid.

This seems backwards to me.  I should owe Cap Gains tax in Oregon for the sale of the property and should get a credit for the OR tax paid on my CA return.

BTW, I originally did this in the other order (CA return first, then OR return) and the same thing happened.  So I figured I had to do it in the other order, but it still credited my OR return.

Is TurboTax doing the right thing?  I am using the Premier Windows desktop version.

[ColeenD3]

If you need to prepare more than one state return, you may notice that your resident state return isn't giving you a credit for the taxes you paid to the nonresident state(s).

The state where you live (your resident state) will tax all your income and will give a credit for taxes paid to the nonresident state on the resident state return so you aren't double taxed.

In order to receive a non-resident state tax credit follow these steps:

1. Enter your nonresident state information first
2. Enter your resident state information next
3. Check to make sure you choose the resident state long form
4. On your resident return summary screen, you'll see a credit for your nonresident state taxes

If you created your resident state return before you began work on your nonresident state return, TurboTax will not pull over any tax amounts (credits) from your nonresident state return.

To resolve this issue, you will need to remove your resident state return and then create a new resident state return. Doing this has the same effect as entering your nonresident state first, which is the order the returns should be entered in.

[svBill3]

This is what I did and it is crediting my Oregon non-resident return rather than my resident CA return.

When I filled out my OR non-resident return first, it said I owed tax in Oregon.  So far, so good.

I then filled out my CA resident return and it gave me a credit on my non-resident OR return and said I owed no tax in Oregon.

Isn't this the reverse of what should have happened?

To recap what I have done so far:

1. Filled out Federal return
2. Filled out CA return
3. Filled out non-resident OR return
4. Realized I did it out of order
5. Removed both CA and OR returns
6. Filled out OR return
7. Filled out CA return

So, I'm not sure why it is not recognizing the capital gain belongs to the OR return.