For one to accumulate wealth, there is need for proper planning and organization.
It is also important to reduce the amount of money spent on taxes in the quest for wealth acquisition.
By following proper tax incentives, one is safeguarded from losing income generated from properties that depreciate.
By securing a loan against real estate property, an investor is assured of more free money to invest.
This move also protects a home owner from tax cuts in case he decides to sell the residential property.
There are some strategies that can enhance an investor's prospects of saving money in order to accumulate wealth.
The 940 tax help gives pointers to some of these strategies:

1. Depreciation: All rental properties lose some value over time.
   This loss in value is as a result of depreciation.
   The tax incentive behind depreciation is meant protect against ageing properties that diminish in value over time.
   A rental property that has been in operation for 28 years qualifies for depreciation income.
   For appliances and other structural accessories, tax deductions begin after 15 years have elapsed.
   
2. 1031Exchanges: An investor can be relieved the responsibility of paying tax, after selling property, if the funds are going to be used to purchase another property.
   However, one has to undertake the transaction within a given time frame and the facility is mostly restricted to real estate.
   For 1031 Exchanges to function, the property that one intends to buy has to be of a higher value than the one being sold.
   It has to be actual property and not any other form of investment and has to be bought with the sole purpose of investment.
   If these conditions are not met, then one has to pay taxes.
   For these kinds of transactions it is always advisable to go for qualified agents.
   Funds are usually held by agents as the investor waits to buy the other property.
   Within one and a half months, a contracted agent should submit a letter showing the property to be exchanged and within five months, the transaction should be finalized.
   
3. Borrowing a loan: One can create an investment channel by using residential property as security to borrow a loan.
   However, for this to happen, one must have title of ownership to the home.
   The funds obtained can be used to refurbish the home or even upgrade it.
   
4. One can defer taxes after selling a residential home.
   However, one needs to have lived in the home for more than five years.
   This is a good idea for wealth accumulation and helps the home owner save on money that would have otherwise, been spent on taxes.