Area 1031 Exchanges For Certain Estate Investors When an investor markets real estate, a funding gains tax is acknowledged, together with a tax on deprecation recapture. The routine funding gains tax, deprecation recapture, and also any type of relevant state tax can often result in a tax obligation obligation in the 20% to 25% range for the sale of realty. (If the real estate has actually been held for less than twelve month, every one of the gain will certainly be taxed at much higher short-term funding gains prices.).