Section 1031 Exchanges For Specific Estate Traders When an investor offers property, a resources gains tax obligation is identified, together with a tax on deprecation regain. The normal capital gains tax, deprecation recapture, and any type of applicable state tax obligation can frequently lead to a tax obligation obligation in the 20% to 25% range for the sale of realty. (If the real estate has been held for less than 12 months, all of the gain will certainly be tired at much higher short-term funding gains prices.).