There are many tax benefits to alpaca ownership. In addition to their stress reducing and other lifestyle benefits, alpacas permit unique diversification of financial portfolios. Unlike conventional investments, alpaca ownership features tax deferred wealth building and compound appreciation.
Insurance: A very important point to remember when considering investment in alpacas is that they can be insured against loss, adding peace of mind not offered by other investments.
Tax Deferred Wealth Building: With a herd growing and increasing in value, income taxes can be deferred until offspring are sold, creating a considerable advantage over traditional investments.
Tax Advantages of Alpaca Ownership: Alpaca ownership offers many unique tax advantages. These include sheltering income from other sources by expensing farm related business items, use of depreciation and capital gains treatment. If alpacas are actively raised for profit, all expenses attributable to them can be written off against income. If investors choose to board their alpacas, with care and maintenance left to a third party, breeding stock may be depreciated and the cost of maintaining the animals may be expensed income.
We strongly recommend that you consult an accountant or tax advisor who is familiar with breeding livestock and farming issues.