Section 1031 Exchanges For Selected Estate Investors When a real estate investor sells property, a capital gains tax is acknowledged, in addition to a tax on deprecation recapture. The routine capital gains tax obligation, deprecation recapture, and any type of relevant state tax can usually result in a tax obligation in the 20% to 25% variety for the sale of realty. (If the realty has been held for less than 12 months, every one of the gain will certainly be tired at much higher short-term resources gains rates.).