Section 1031 Exchanges Genuine Real Estate Traders When an investor sells real estate, a capital gains tax obligation is identified, in addition to a tax on deprecation regain. The routine resources gains tax obligation, deprecation regain, as well as any suitable state tax obligation can typically result in a tax obligation in the 20% to 25% array for the sale of realty. (If the property has actually been held for less than one year, all of the gain will certainly be taxed at a lot higher short-term resources gains rates.).