Section 1031 Exchanges for Real Real Estate Investors When an investor offers realty, a capital gains tax obligation is acknowledged, in addition to a tax obligation on deprecation regain. The regular funding gains tax obligation, deprecation regain, as well as any type of applicable state tax can typically result in a tax obligation liability in the 20% to 25% variety for the sale of real estate. (If the property has actually been held for less than year, every one of the gain will be strained at a lot greater short term funding gains prices.).