Serial 1031 gains or loss calculation

[Maryann Goyn]

If I use a 1031 to defer capital gains on a property and later take a loss on the replacement property does that decrease the amount of tax i would owe? I just sold a property and started the 1031 process but with the market so hot right now I am afraid that i am overpaying and may take a loss if I decided to sell and get out of the landlord business in a few years. Haven't been able to find much on how the future gains or loss is calculated if you do a string of 1031s over time.