Financial Observations
The major tax advantages of alpaca ownership include the employment of depreciation,
capital gains treatment, and if you are an active hands-on owner, the benefit of
off-setting your ordinary income from other sources with expenses from your ranching
business (See Tax Consequences of Owning Alpacas.)
The financial return using the agisted approach, should you elect to board your
animals, is also very good. There are breeders who would be happy to discuss agisting
alpacas on behalf of prospective owners.
- Quality, color, gender of offspring, and strength of the overall industry could
influence results positively or negatively.
- It is important that you make a purchase decision using assumptions that reflect
your personal tax and financial situation, as well as your own assessment of the
alpaca industry.
- Financing terms are available from some breeders and range from a few months to
two years or more.
It is always wise to consider both the upside and the downside of any potential
purchase, It is important to feel comfortable with a range of possible financial
returns if your actual experiences differ from your assumptions.