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F. Financial Observations

by AOBA (Alpacas Owners Breeders Association) www.alpacaowners.com

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.



Related Articles:

 A. Introduction
 B. Who Buys Alpacas?
 C. Alpaca Supply and Demand
 D. Alpaca Values
 E. Hands-On Alpaca Ownership
 F. Financial Observations
 G. Tax Consequences of Owning Alpacas
 H. Methods of Financing Your Alpaca Purchase
 I. Creating a Herd
 J. Alpaca Purchase Contracts
 
 View the Complete List of Articles