Looking to add some fiber to your investment diet?

Alpacas produce a premium fiber in 22 vibrant colors, the demand for which is ever increasing. Annual fiber yields vary from about five pounds from a single female to a reported thirteen pounds from a larger male. Breeding and selling in this ever increasingly popular industry is another easy way to add to your investment dollars!

Not to be overlooked as a very important aspect of raising alpacas are the great tax benefits provided to both farms and any small business. An alpaca can typically be depreciated over a five-year span or 20% per year.  In addition, Section 179 of the tax code to allows for the deduction of a capital asset.

Effective as of 09/27/2010, H.R. 5297 (the Small Business Jobs and Credit Act of 2010) had a substantial impact on Section 179 – below is quoted from “section179.org”:

  • An increase of the total amount available for deduction to $500,000 (up from $250,000)
  • An increase to the total amount of equipment purchased to $2 million (up from $800,000).
  • The above numbers are to be in effect for 2010 and 2011.
  • In addition, the bill also extended the 50% bonus depreciation to tax year 2010 (it was rescinded earlier, but has been restored.)

Capital gains can be available on the sale of breeding animals and their offspring. Current expenses are deductible.

Consult a tax advisor for specifics as they relate to you.

Add to all of this that alpacas are 100% insurable. Can stocks do all of this?

All You Need Is Love  Alpacas are so easy to raise, practically all you need to give them is love. They eat very little food and therefore require only a small amount of acreage per animal. Veterinary costs are minimal. Besides their endearing qualities of warmth, friendliness, and trainability, they have an enduring quality of strength and toughness. That means you’ll have a friend for a long time to come. Coming from the rugged Andes makes life on the farm a piece of cake…for your alpaca and for you!

The Many Benefits Of Breeding  As your alpaca herd breeds and grows, the return on your initial investment multiplies at a strong and steady rate. Along the way, you’ll receive numerous tax benefits and incentives that make your investment even more attractive! Deductible expenses, capital gains benefits, and insurable, depreciable investments are just a few of the many ways you can save money while also taking part in one of the most exciting industries in the world.