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About Alpacas:
Alpaca Description
Published by the Alpaca
Owners & Breeders
Association (AOBA)
1. Introduction
2. Who Buys Alpacas?
3. Supply & Demand
4. Alpaca Values
5. Capital Requirements
6. Hands-On Ownership
7. Financial Observations
8. Tax Consequences
9. Financing
10. Creating a Herd
11. Purchase Contracts
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Financial Aspects of Alpaca Ownership
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Financial Observations
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- 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.
The above text is an excerpt from the AOBA Breeder's Guide article: Financial Aspects of Alpaca Ownership.
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