Tax Benefits

After investigating whether alpacas are the right choice for a new business venture, you will wan't to make sure you understand some of the tax benefits that come from opperating your farm.  We suggest that you pick up IRS publication 225 "Farmers Tax Guide" and become familiar with it.  The help from a qualified accountant that has experience with farming is also highly recommended.

 

• Raising alpacas can offer the farmer some very attractive tax advantages. 
  
  If alpacas are 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, all of which can help shelter current cash flow from tax. Beyond these basics there are several strategic tax advantages for the alpaca farmer. 

As with any tax rules, they can and will change year to year.  Please make sure you do your research and stay on top of any changes that will support the growth of your farm. At present it appears that Uncle Sam is being very helpful to those wanting to enter the alpaca business.  So what are you waiting for?