Section 1031 Exchanges for Real Estate Investors When an investor offers realty, a resources gains tax is recognized, in addition to a tax on deprecation regain. The normal funding gains tax obligation, deprecation recapture, and also any type of suitable state tax can frequently lead to a tax obligation responsibility in the 20% to 25% range for the sale of property. (If the property has been held for less than one year, all of the gain will certainly be strained at a lot higher short-term capital gains rates.).