Area 1031 Exchanges For Specific Real Estate Traders When a real estate investor offers property, a funding gains tax obligation is identified, together with a tax obligation on deprecation recapture. The regular resources gains tax obligation, deprecation regain, and any suitable state tax can often cause a tax obligation responsibility in the 20% to 25% variety for the sale of realty. (If the realty has actually been held for less than one year, all of the gain will be taxed at a lot greater short term capital gains prices.).