Area 1031 Exchanges Genuine Estate Investors When an investor markets real estate, a funding gains tax obligation is identified, in addition to a tax obligation on deprecation regain. The regular funding gains tax obligation, deprecation recapture, and also any kind of relevant state tax obligation can frequently cause a tax obligation liability in the 20% to 25% variety for the sale of real estate. (If the realty has been held for less than year, every one of the gain will be tired at much greater short-term resources gains prices.).