Alpacas have been called "the world's finest livestock investment." It is difficult to compare alpacas with other investments as pure investments. How much is peace of mind worth? Unlike the stock market, alpacas are depreciable over five years, giving the investor an immediate investment return in tax savings while the herd is growing.
Breeding stock held for more than one year is subject to capital gains, and alpacas qualify for Section 179 of the I.R.C. which allows an alpaca farmer (business owner) to depreciate:
2013 Deduction Limit: $500,000
2013 Limit on capital Purchases: $2,000,000
2013 Bonus Depreciation: 50%
Consult your tax advisor on how it might benefit you. As you raise your alpacas, all expenses (i.e., food, veterinarian, supplies, computers, travel, tractors, showing, advertising, etc.), are deductible. In many states, those involved in farming will have a significant reduction in their real estate taxes. Unlike many investments, alpacas are 100% insurable.
Alpacas are not inexpensive, ranging from $5,000 to $40,000 for breeding females and $5,000 to $50,000 for high quality males. High quality proven males with exceptional offspring have sold in excess of $200,000. In many cases, financing your alpaca purchase can be done right on the farm as many alpaca breeders offer financing.
The alpaca herd grows at a limited rate, which helps to keep the supply and demand in check because:
The Alpaca Registry, Inc.
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.
All you need is love
Adding to the overall investment picture is the fact that alpacas are inexpensive to raise, require small acreage, and are very hardy animals. Friendly and trainable yet hardy and tough, the alpaca is truly an investment you can hug. Have you ever hugged your stocks? To learn more about alpacas, visit an alpaca farm or ranch near you.
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