Why not do something like this? I did not have SSMS in front me to test, it was done in notepad. Hope this helps or gets you on the right path.

DECLARE @OLDID INT, @NEWID INT

SET @OLDID = ( SELECT MAX(COL1) FROM TEST1 )

INSERT INTO TEST1

SELECT 1, TEST

UNION ALL

SELECT 2, TEST

UNION ALL

SELECT 3 TEST

UNION ALL

SELECT 4, TEST

SET @NEWID = SCOPEIDENTITY()

INSERT INTO TEST2

SELECT @NEWID, TEST

UNION ALL

SELECT @OLDID, TEST

SET @OLDID = ''