Some people choose to breed and invest in alpacas as a lifestyle, some for the tax advantages. We have chosen to raise and breed alpacas to enjoy the comfortable and tranquil lifestyle and, in addition, for the tax advantages. There are so many different ways of investing. A few are:

     For information regarding any of the above please feel free to contact us, we’ll be happy to discuss these options and give you specific information.

     Alpacas are hardy little animals requiring little effort; they are odor free and earth friendly. They are herd animals so it is best to start with 2 or 3. Females typically range in cost from $15,000 to $30,000 and the males can vary. Pet quality or geldings are very reasonable. Junior herd sires are less expensive than a proven stud. Some top studs can go into the six figures.

     Alpaca breeding stock can be depreciated over 5-7 years. You can invest passively such as purchasing shares or partial ownership such as ½ interest of an alpaca.

     Another passive investment could be purchasing one alpaca where you board it but reap the rewards of selling the offspring from a female or offering stud service on a male. It is not uncommon for a good stud to earn $15,000 to $20,000 per year in stud fees.

     Expenses can include feed, vet care, insurance costs, travel expenses for farm visits and alpaca shows, marketing costs, breeding fees, farm equipment, land, fencing, structures such as shelters or barns, water wells, autos, trailers, etc. Another big benefit can be if you are actively involved in the management of the herd. Section 179 of the IRS Code is helpful in learning about the tax benefits and the ability to write-off any of the expenses.

     Should you desire to become involved in the alpaca world, we suggest you consult with a tax advisor who is familiar with successful alpaca business ventures.

 

Lyn & Alan Kessie  ▪  Waxhaw, NC  ▪  704-843-0517   ▪   kess@keepsakealpacas.com