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Hope all is going very well with you. I’m needing assistance with an Original no more than 250 words about how these Alpacas, “how the capital improvement you identified could help the business”. 

The alpaca industry has a mixture of individuals ranging from the alpaca breeder who is interested in breeding and raising alpacas as a business venture to those individuals who are interested in raising alpacas strictly to produce fleece to be processed and sold to be made into end products.  The industry even has many people who just want to own alpacas as pets and companions on small acreages.  No matter which category that you fall into, it is important for you to understand the risks and opportunities in raising alpacas.  Just like any business, there are risks and there are benefits.

Although alpacas should not be considered pure investments, in addition to added pleasure and peace of mind that they can bring, there are many business benefits in raising alpacas, For example, like other valuable assets, breeding stock held for more than a year qualifies for long-term capital gains treatment when sold. Unlike many assets, alpacas are 100% insurable.

Alpacas are not inexpensive, ranging from $10,000 to $40,000 for breeding females and $5,000 to $35,000 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.

Alpacas are depreciable over a maximum of five years, giving farm and ranch owners immediate tax savings while their herd is growing. Also, alpaca purchases can qualify for more rapid depreciation under Section 179 of the I.R.C. As you raise your alpacas, most related expenses (ie., feed, vet care, supplies, farm equipment, computers, plus travel, showing and advertising costs, etc.) are deductible. In many states, those involved in farming can receive a significant reduction in their real estate taxes. Be sure to consult your tax advisor to learn how these tax rules can help you.


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