Section 1031 Exchanges For Selected Estate Traders When a real estate investor markets realty, a capital gains tax is identified, in addition to a tax on deprecation regain. The routine resources gains tax, deprecation regain, and also any type of applicable state tax can commonly lead to a tax obligation responsibility in the 20% to 25% range for the sale of real estate. (If the property has been held for less than one year, all of the gain will certainly be exhausted at much higher short term funding gains prices.).