Question on capital gain taxes

I have sold my company at 2007 and it was located in NJ. I live in NY and now that I need to pay my personal taxes including for the amount that I sold the company for I was told that I need to pay taxes to NJ and to NY. Is it correct?
Thank you

Meya,

Throughout the year far too often we take some actions without considering the tax consequences. Then at the final hour, we become concerned about our tax situaton.

Let's back-up a bit. While you were working in NJ and living in NY, you may have had to pay income tax to both states on your earnings. In this situation, NY would give you credit for the tax you paid in NJ.

Now you have a capital gain from NJ. I would think NJ wants to tax that gain.
I would think that NY would give you credit for the tax you paid to NJ on that gain.

This is something that you want to get done properly. Pay an accountant a few dollars to do that. You will sleep better.