1031 after a purchase

[Matthew Fermino]

I own a STR in Wells, Maine. I may sell it now (next 6 weeks) and realize roughly $1M of gain. In January I purchased another home that is not yet approved for subdivision but I expect it will be fully approved in the next few months and am knocking down the existing home and developing four homes. I intend to keep two as investment STRs and sell two. Can i still do a 1031 or is there any structure involving an improvement exchange, reverse exchange, parking arrangement, or subdivision strategy that would allow me to defer some or all of the gain into one of the retained homes?"

[Bill B.]

You could have if you hadn’t bought the dirt already. Once you own it nope, can’t do anything. All the options you named involve the 1031 QI buying/holding the dirt instead of you.  

Might be worth looking for another property to purchase in order to save $300k+ in taxes.