Your Michigan Source for Alpacas
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Your Michigan Source for Alpacas
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Raising Alpacas = $$$
They are Earth-friendly, safe, easy to handle, and practical. They are inexpensive to raise, requiring minimal feed, shelter, fencing, or veterinarian cost. They produce a cash crop in the form of fiber. They are fully insurable. They have tax advantages, such as expense deductions, depreciation, and the deferred recognition of accumulating wealth. In short, they are the world's finest livestock investment. Returns on a small herd are generous. A number of magazine articles have pointed out the high returns from owning alpacas. Alpacas can provide a satisfying addition to one's portfolio with the added benefit of encouraging a healthful lifestyle and family cohesiveness. Alpacas are a stress-free investment that you can hug. The fact is that Uncle Sam will pay for a portion of the cost of acquiring your herd, assuming you are currently paying income tax and plan to continue paying income tax over the next six years. You can write 100% of your original purchase price off, up to a maximum of $108,000, in the year of purchase. If you are in the 45% tax bracket, the deductions for depreciation that the animals are eligible for may save you up to 45% in cash, of your original purchase price. If you were to buy ten females for $108,000, pay $36,000 down, and take advantage of IRS code section 179, insure the animals and finance the balance over 4 years, the government would give you a tax refund of $50,607 and you would have cash out of pocket of ($7,582) in the first year. In other words in the year of purchase you would pocket $7,582 in net cash, after tax. This assumes you are in a 45% tax bracket (state & federal). Following the "Hands-on" approach to raising alpacas on your own ranch, can offer the alpaca rancher some very attractive tax advantages. For instance, if alpacas are actively raised for profit, all the expenses attributable to the endeavor can be written off against your income. Expenses would include not only feed, fertilizer, veterinarian care, etc., but depreciation of such tangible property as breeding stock, barns and fences. These expenses can also help shelter current cash flow from tax. Benefit from Section 179 Deduction
The Alpaca Registry, Inc. (ARI)
offers fully blood-typed protection to all alpaca owners. The registry has been
closed since 1998 to any newly imported animals. It is very important for
investors of alpacas to purchase only ARI registered alpacas. You will not be
able to register alpacas unless both of their parents are currently registered
with ARI.
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If you would like further information or if you would like to schedule an appointment - please call us at (877) 60-PACAS or send us an e-mail at gknapp@kialpacas.com
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No
other farm animal can equal the alpaca in offering sound investment returns from
easily managed animals on a small acreage.