Using Capital Losses to offset Depreciation Recapture & 1031

[Craig Lessler]

Regarding a future 1031 tax deferred exchange, I estimate $800K will need to be invested into replacement properties to continue to defer tax liability of all depreciation recapture and capital gain from the sale of a property.  If the depreciation recapture is $200K and there is an additional long term capital gain of $300K, could $150K of carry forward capital loss be used to offset depreciation recapture and a partial 1031 exchange be made into a new property purchased for $650K without incurring a tax liability?