Its complicated and if you violate any of the IRS guidelines it will negate the 1031. 

Even the IRS publications are not stating the rules clearly. 

Thanks to the Inflation Reduction Act, the IRS has launched new online tools to streamline clean energy credits.

Here’s the breakdown of your situation:Capital Gains: About roughly 45.53% of each payment (including the down payment, annual payments, and balloon payment) will be taxed as capital gains, and the rest will be considered a return of principal.Interest: The IRS requires interest to be charged.

Be happy to hop on a call with you to discuss further.

it’s important to note that the IRS generally does not allow you to deduct expenses for a new career or business that you are trying to enter.

The IRS typically operates at a snails pace.  

IRS liens, municipal liens, utility liens also transfer to the high bidder.I'd contact the owner and see if a pre-auction deal can be struck, which would eliminate the auction competition. 

I’m sure there are plenty of people doing “workarounds” which WORK UNLESS AUDITED  by the IRS.  

Are you able to get on an installment plan with the IRS?