Section 1031 Exchanges Genuine Estate Traders When a real estate investor markets property, a capital gains tax obligation is recognized, in addition to a tax on deprecation regain. The regular funding gains tax, deprecation regain, and any type of relevant state tax obligation can usually result in a tax liability in the 20% to 25% variety for the sale of real estate. (If the realty has been held for less than twelve month, every one of the gain will be tired at a lot greater short term capital gains prices.).