Area 1031 Exchanges for Real Estate Investors When a real estate investor sells realty, a resources gains tax is recognized, along with a tax obligation on deprecation recapture. The normal resources gains tax obligation, deprecation regain, and any type of relevant state tax can typically cause a tax responsibility in the 20% to 25% variety for the sale of real estate. (If the property has been held for less than year, every one of the gain will certainly be exhausted at a lot greater short term capital gains prices.).