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On this page: Caring for Alpacas | Visit Our Farm | Alpacas & Taxes (click to jump down)
Alpacas are gentle on the land and easy to care for. They need fresh, clean water, a shelter from the harshest weather conditions, protection from predators, grass or hay, grain and minerals. Shelters will vary depending on the weather conditions and local threats and can range from a simple 3-sided run-in to a heated barn. Males and females are generally penned separately so that farms can control breedings and determine the parentage and due dates. The Alpaca Registry, Inc. can then verify parentage at the time of registration using DNA testing from a blood sample.
Unless there is a problem, alpacas need no assistance birthing or nursing. Most breeders wean the babies (crias) from their dams when they are about six months old. Some dams will wean their own offspring. Around this age is a good time to begin halter training. Alpacas are intelligent and learn quickly. Halter training is a matter of getting the alpaca to trust you and used to leading on a halter. Work with them for 15 minutes a day for several weeks. There are also camelid training classes available from several sources:
Alpacas will need to have their fleece shorn off, generally once a year. Alpaca fleece is a favorite among fiber artists and hand-spinners due it it's amazing softness, warmth, strength and it's ability to felt. One of the best ways to find out more about raising alpacas is to visit a farm near you. We welcome the opportunity to introduce you to the business of raising alpacas, please contact us to set up a visit.
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The
growth of the alpaca livestock industry and the growing alpaca fleece
market is providing many people with the opportunity to live on
a farm and earn a substantial income from it while experiencing
the joy of this lifestyle! 
For
best health, regularly clean up their poop piles and establish a
worming routine with your veterinarian that is suitable for the
pasture conditions and worm load in your area. Annual vaccinations
are usually recommended as well. 
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Alpaca ownership can offer excellent tax advantages through depreciation, writing off capital improvements, and for active hands-on owners, the benefit of offsetting ordinary income from other sources with expenses from a ranching business. Those considering entering the alpaca industry should engage a reputable accountant for advice in setting up their books and determining the proper use of the concepts discussed here.
Writing Off Alpaca Farming Expenses & Purchases
Raising alpacas at your own ranch, in the hands-on fashion, can offer the rancher some immediate tax advantages. If alpacas are actively raised for profit, all the expenses attributable to the endeavor can be written off against your income. Expenses include feed, fertilizer, veterinarian care, and the like. In addition, certain eligible property may be written off in the tax year of purchase, rather than depreciated over the asset's useful life (see the sidebar article to the right). Such property includes:
- Breeding quality ALPACAS!
- Machinery and equipment
- Fencing and buildings such as single-purpose agricultural structures (shelters and barns) and most storage facilities
Being able to write off expenses and purchases in the first year can really help new farmers free up money to set up their farms and purchase their breeding stock.
Depreciating Capital Improvements on Alpaca Farms
Hands-on alpaca farmers can also write off capital improvements against their income. Construction of barns, fences, ponds, driveways, and parking lots can be expensed over their useful life. Equipment such as tractors, pickups, trailer, and scales each have an appropriate schedule for write-off. The depreciation schedule for each asset class varies from three years to 40 years.
Tax-deferred Wealth Building in Alpaca Herds
Alpaca breeding allows for tax-deferred wealth building. An owner can purchase several alpacas and then allow the herd to grow over time without paying income tax on its increased size and value until he or she decides to sell an animal or sell the entire herd.
In summary, the major tax advantages of alpaca ownership for hands-on breeders include the ability to write off expenses, purchases, and capital improvements against your current income plus the possibility for tax-deferred wealth building. Remember that tax laws are complex so be sure to consult a tax professional to apply these advantages to your situation.
For a complete discussion, refer to IRS Publication 225 - Farmers Tax Guide
Alpacas at the Feeder
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