My client sold a rental property and is reporting a gain of $155k in his tax return.

He lives in NY but the property sold is located in NJ and sold in NJ.

I am not being able to exclude this gain in his NY taxes, even though I am reporting this as taxable in his NJ NR return.  So proseries is prompting me to have him pay taxes for this gain in both states.

He only needs to pay taxes in NJ, correct? How do I mark in his NY tax return?

PS. he also has a W2 form from NY for $25k.

Thank you.