You may have heard that Alpacas make a great investment because of their high annual yields of fiber and the lucrative income it can provide. But did you also know that the tax code makes offers huge benefits to Alpaca owners?
Investing in Alpacas has many advantages.
Whether you’re an individual with the ability to raise an Alpaca for fiber on a small farm or breed alpacas to shear or sell on a larger area of land, the tax code is full of deductions that will make investing in an Alpaca even more profitable than many other forms of investment.
Section 179 of the tax code allows for taxpayers to begin claiming deductions for some capital assets, the things purchased as investments toward profits, as soon as they are purchased. Alpacas are among the limited number of purchased investments that are included in this section. These are benefits that you will not be eligible to receive if you put money toward a traditional investment opportunity, like buying stock or a CD.
If you own an Alpaca for over a year, it is subject to capital gains tax, like most other investments. Capital gains are profits from an investment that has been resold. Your initial livestock will be subject to this provision if you sell them, as will any offspring from your livestock.
At the end of the day, Alpacas are a form of investment that offer significant and unique tax deductions that will start benefitting you as an investor right away. As long as you keep them, you won’t need to pay capital gains taxes, so Alpacas an be a great long-term investment opportunity. Or, if you choose to sell them, take the profit and pay the capital gains taxes on the sale, you still come out ahead—you will have accumulated enough tax benefits between the time of purchase and the sale to compensate for paying livestock capital gains taxes on your Alpacas.
This entry was posted on Saturday, February 4th, 2012 at 1:56 pm and is filed under Investments, Personal Finance, Retirement, Savings.Oh my gosh, Spring has sprung and there could not be more to do!
In February, a couple of my Peruvian females left with Carolynn Mast for a ranch in Washington. She was so excited and it made my day to have such a happy customer.
March 5th the NW Camelid Foundation had their 23rd Annual Banquet and Stud Auction where Peruvian Zapotta and El Nino’s Elberto were the Stud Service Donation males this year. The food was great and so were the people. Lots of fun auction items and we brought home a life-size white tiger and some very nice potted plants.
The ARF Stud Service Donations have been chosen and I am very excited to have finished with the advertising for both Aussie .38 Special and MacGuyvers Balboa which you can see at http://alpacaresearchfoundation.org/images/2011_stud_flier.pdf, in online eBlasts and on page 52 and 53 of the 2011 AM Herdsire Edition. Please feel free to buy tickets to support camelid research and get a chance to win a breeding to one of the top males in the nation.
The next week a couple very nice males went to a new home in Port Orchard, Washington with Kim Hughes. The boys love their new home and Kim is thrilled with them.
.38 Special arrived at ATV for a visit and is staying until May 19th when he will leave the girls he is attending to and go back to his home at Never Summer Alpacas. He is probably enjoying the grass as much as the girls since there continues to be snow storms in Colorado. He is a very sweet male with a tremendous fleece and we look forward to his offspring next Spring.
On March 23rd we delivered five animals to Dennis Duenas who has a new ranch in Montana. This is a very exciting time for him since he now has three of my favorite females which are all due very soon and the super stud, Hershey’s Hugo! for their rebreed.
The grass has grown A LOT even though it continues to be very cold for this time of year. The challenge I have is to mow between almost continuous rains but we would be waist high in it if I didn’t make the effort. I don't understand how it can grow so much when it is so cold. I had to relight the woodstove today and we saw hail. The hummingbirds that hatched and grew outside my office window a couple of years ago have invited their friends so we have quite a number wintering over which keeps me busy filling their feeders with nectar. The Capistrano Swallows have yet to arrive when they are normally here on April 4th.
We are now preparing to preview our small on-line auction with Skyline Alpacas. It iis pretty scary since it is a NO-RESERVE AUCTION with VERY LOW starting prices. I have included some of my better females so this is going to be interesting. If you are reading this and want to attain great animals at a reasonable price that are guaranteed healthy, go to http://www.openherd.com/farmAuctions.aspx?farm=53 and I think you will be amazed at the value you will see pairs, pregnant and due as well as maidens available in both Suri and Huacaya.
Today was the deadline for an ad in the CABA Classic Show Book so I really had to scoot to get it done since I started on it this morning. Tomorrow is the deadline to enter my alpacas into the 2011 CABA Classic Show and I am still not sure just which ones I am going to take. I vacillate between a dozen of my favorites learning a long time ago that it wasn’t worth putting more than one kid in a class even if I won the first and second place.
I saved the best until last. We have a new junior herdsire named Laramie that we are very excited about. Take a look and let us know what you think; http://alpacanation.com/herdsires/03_viewherdsire.asp?name=39061
Wishing you all a very pleasant spring!
Lona










