Alpacas 101

Owning Alpacas

OWNING SURI ALPACAS: 

PURCHASE AND RAISE - Raising alpacas on your own property with hands-on, offers the farmer the best tax advantages. If the alpacas are actively raise for profit, all of the expenses attributed to the endeavor can be written off against your income.

AGISTMENT- By Egesting the alpacas with an established breeder, the passive owner can enjoy some of the tax advantages such as the cost of breeding stock and expense directly relating to the maintenance of the animals. 

The main difference between hands-on or active farmer and a passive owner involves the active owner's ability to deduct his investment losses against his other income as well as income directly derived from his alpaca business. The passive investor may only be able to deduct losses from his investment against gain from the sale of animals and fleece.  Talk to an accountant familiar with agriculture and the section 179 depreciation schedule.  Currently, it is a tremendous benefit to farmers of all types.
 

GROSS INCOME CALCULATIONS:  Sale of livestock  Sale of crops, i.e. fiber, manure  Breeding fees  Boarding fees  Rents  Agriculture program payments  Income from Cooperatives  Cancellation of debts  Income from other sources, such as services Interest income Show ring monetary awards

DEDUCTIONS:  Feed Labor Fertilizer Veterinary care & supplies Vehicle mileage Accountant fees Taxes and Insurance Travel to shows, sales, meetings, etc. Repairs and Maintenance Interest expenses Breeding fees  Rent and Lease costs  Depreciation on animals used for breeding  Real property improvements (barns, fencing, equipment) Educational expense Advertising & sponsorship Farm fuel/oil Farm publications Membership dues and subscriptions Misc. chemicals (weed killer, etc.) Tools with a useful life of less than one year Farm use portions of telephone, utilities, property taxes, etc.  Farm equipment and supplies Office equipment and supplies Percentage of home for office space

FINANCING YOUR FIRST PURCHASE: 

Some breeders offer financing for your purchase. It is typically short term and involves paying for the animals before you take possession of them. 

Insurance can be easily obtained while the balance is still owing and as long as you wish your investment to be protected.