There are tax incentives and financial considerations to be aware of. The return on investment on breeding alpacas is attractive due to their demand and prices.
The major tax advantages of alpaca ownership include the use of depreciation, capital gains treatment and the benefit of off-setting your ordinary income from other sources with expenses from your farming business.
If you do not have the time, land, or inclination to be involved in alpaca farming on a direct and daily basis, you may still utilize many of the tax advantages by boarding your animals.
We would suggest that anyone interested in becoming involved in raising alpacas for profit obtain a copy of IRS Publication #225, The Farmer’s Tax Guide which can be obtained from your local IRS office. You should also be familiar with Section 179 of the tax code that allows a substantial deduction each tax year for newly acquired property, buildings, breeding stock and equipment that are normally long-term depreciable assets.
We believe that with the relatively small number of alpacas currently available there will be an extended and steady demand for breeding stock to continue meeting the needs of our growing industry for many years.
Shadowberry Farm Alpacas
Tom & Nancy Imphong~73 Biddle Rd.~Carlisle, PA 17015