Area 1031 Exchanges For Selected Real Estate Traders When a real estate investor offers realty, a capital gains tax is identified, in addition to a tax on deprecation regain. The normal funding gains tax obligation, deprecation recapture, and any type of applicable state tax obligation can commonly lead to a tax obligation responsibility in the 20% to 25% range for the sale of realty. (If the realty has been held for less than year, all of the gain will certainly be taxed at much greater short term capital gains rates.).