Following the "Hands-on" approach to raising alpacas on your own ranch, can offer the alpaca farmer 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.
Beginning in 2003, alpaca owners have been able to benefit from Section 179 Deduction. Currently up to $125,000 can be written off your tax return under section 179. To learn more about the new tax benefits, visit the following web sites:
www.irs.gov/formspubs/article/0,,id=109879,00.html
finance.yahoo.com/taxes
IRS--Tax Law Changes for Businesses. Small businesses benefit from Section 179 deduction. The tax ramifications are great. Jack is a CPA and is qualified to help you design a financial plan and give you the finite detail of the tax aspects.
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