Area 1031 Exchanges Genuine Estate Traders When an investor offers real estate, a resources gains tax is recognized, together with a tax obligation on deprecation regain. The regular funding gains tax, deprecation regain, and also any kind of applicable state tax obligation can often cause a tax obligation in the 20% to 25% variety for the sale of realty. (If the property has been held for less than twelve month, every one of the gain will be exhausted at much greater short term capital gains prices.).