A reverse exchange is closing on the purchase of the replacement property before closing on the sale of the relinquished property.  Many investors utilize a reverse exchange to immediately acquire a desirable replacement property in a seller’s market where there may be competing offers or there is a pressing need to close quickly. Other investors may initially set out to perform a delayed exchange, but they quickly find an ideal replacement property that must close on quickly. In this second scenario, the taxpayer avoids the pressure-filled problems associated with the 45-day identification rule. There are several different reverse exchange variations including the replacement property parked option, the relinquished property parked alternative and the reverse-improvement exchange. Read the full article, Reverse Exchanges.