Area 1031 Exchanges Genuine Real Estate Investors When an investor markets property, a capital gains tax is acknowledged, together with a tax on deprecation recapture. The routine funding gains tax, deprecation regain, and any kind of relevant state tax can typically lead to a tax obligation liability in the 20% to 25% range for the sale of real estate. (If the realty has actually been held for less than year, all of the gain will be tired at a lot greater short term capital gains prices.).