Magical Farms - Livestock Investment

Alpacas are the World’s Finest Livestock Investment

Economic Stimulus Act of 2008 Tax Incentives

Business owners can elect to expense up to $250,000 (increased from $128,000) of qualifying property (up to $800,000 in value) instead of taking depreciation for assets put into service in 2008.

Businesses are now allowed a 50% bonus depreciation on assets placed into service in 2008.

Here is an example of how these new tax benefits can be calculated:

A $500,000 asset is placed into service in 2008
$250,000 may be expensed under Section 179
$250,000 remains to be depreciated
A further $125,000 may be expensed as Bonus Depreciation (50% of $250,000)
Asset now has a $125,000 base from which to take standard 1st year depreciation
For this example we'll assume 5-year property = $25,000 1st year depreciation
Total deduction in 2008 is $400,000 on the asset
Remaining $100,000 cost of the asset is recovered under the otherwise applicable rules for computing depreciation

Livestock Investment Looking to add some fiber to your investment diet?

Alpacas produce a premium fiber in 22 vibrant colors, the demand for which is ever increasing. Annual fiber yields vary from about five pounds from a single female to a reported thirteen pounds from a larger male. Breeding and selling in this ever increasingly popular industry is another easy way to add to your investment dollars!

Alpaca Farms Ten-Year Herd Growth Due to a high demand for these beautiful animals, it is common for a female offspring of an alpaca to sell for the same price or more than an investor breeder paid for the dam. Returns of 30 to 74% are not uncommon in the alpaca industry.

Not to be overlooked as a very important aspect of raising alpacas are the great tax benefits that uncle Sam provides. An alpaca can typically be depreciated over a five-year span or 20% per year and, in addition, the 2008 Economic Stimulus Bill changed Section 179 of the tax code to allows for the deduction of a capital asset up to $250,000 for assets up to $800,000 put into service in 2008. Additionally, businesses are now allowed a 50% bonus depreciation on assets placed in service in 2008. See the example calculation above!

Capital gains can be available on the sale of breeding animals and their offspring. Current expenses are deductible. Consult a tax advisor for specifics as they relate to you.

Add to all of this that alpacas are 100% insurable. Can stocks do all of this?

All You Need Is Love Alpacas are so easy to raise, practically all you need to give them is love. They eat very little food and therefore require only a small amount of acreage per animal. Veterinary costs are minimal. Besides their endearing qualities of warmth, friendliness, and trainability, they have an enduring quality of strength and toughness. That means you’ll have a friend for a long time to come. Coming from the rugged Andes makes life on the farm a piece of cake...for your alpaca and for you!

The Many Benefits Of Breeding As your alpaca herd breeds and grows, the return on your initial investment multiplies at a strong and steady rate. Along the way, you’ll receive numerous tax benefits and incentives that make your investment even more attractive! Deductible expenses, capital gains benefits, and insurable, depreciable investments are just a few of the many ways you can save money while also taking part in one of the most exciting industries in the world.

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