Area 1031 Exchanges For Selected Estate Investors When a real estate investor offers property, a capital gains tax obligation is acknowledged, together with a tax on deprecation regain. The normal capital gains tax obligation, deprecation recapture, and also any type of relevant state tax can frequently result in a tax obligation responsibility in the 20% to 25% array for the sale of realty. (If the real estate has been held for less than one year, all of the gain will certainly be tired at a lot greater short term capital gains prices.).