Investing in alpacas is a great way to improve your portfolio and add a joyful experience to your life. We have found the investment of time, money and commitment has been well spent since we became involved in the world of alpacas. They give, or return, much more than we do.
Just as we have done, you can enjoy them forever and participate in the tax benefits they provide. These exotic looking animals are still rare in the US, but can be raised anywhere farm livestock can be owned. They can also be depreciated over a five year period. The sale of breeding animals and their offspring can provide capital gains benefits, and expenses incurred are deductible. The cost of each alpaca can be depreciated against your personal income over a five or twenty year period. And your investment is safe because alpacas are 100% insurable! Consult your tax advisor for specifics as they relate to you.
In 2008, The Economic Stimulus Act created Tax Incentives which apply to alpaca breeders. The Act provided that business owners (this includes alpaca breeders) can choose to expense up to $250,000 of qualifying property (no greater than $800,000 in value) instead of assuming depreciation for resources that were initiated into service during 2008. Along with this, businesses have now been given the ability to enact a 50% bonus depreciation on any assets that are initiated into service in 2008.
From the joy of new crias, to the excitement of the shows, our life with alpacas is more rewarding than we ever dreamed it would be! As your alpaca herd breeds and grows, the return on your initial investment multiplies at a strong and steady rate. Along the way, you are also taking part in one of the most exciting industries in the world.
Because alpacas reproduce one offspring each year, your investment grows annually and taxes are not paid until the alpacas are sold. All expenses pertaining to their care are deductible. This chart represents herd growth over a 10 year period beginning at year 1 with 2 males and 5 pregnant females. Due to a high demand for these beautiful animals, it is not uncommon for an offspring to sell for more than an investor paid for the dam.
There are many ways to own alpacas, including "buy and board" if you aren't interested in the "hands on" experience of everyday ranch life. However, you might find that the peaceful joy of working with these amazing animals is as wonderful as the financial gains. The indescribable experience of watching your own dams give birth, and watching your crias (baby alpacas) frolic and grow, are just a few of the many ways alpacas claim a special place in your heart. The pride of seeing your offspring win at the shows is something that has to be experienced to be appreciated.
Please contact us and arrange a visit to learn more about the wonderful world of alpacas!