Fancy Fleece Alpacas, LLC
at Fox Hill Farm
Norwell, MA 02061
AlpacaNation link
Livestock is an age-old investment vehicle. An investment obtains its value from its desirable qualities. The qualities that alpacas possess are unique fiber and scarcity (alpacas cannot be "mass produced"). Value of individual animals is determined by genetics, color, conformation, fleece (quality and density), age, sex, and sometimes show results.
Alpacas are both profitable and enjoyable - they are an investment that can be hugged. Breeding alpacas offers profit opportunities and tax advantages. Unlike stock investments, alpacas are depreciable over 5 years, direct costs can be expensed, and alpacas are fully insurable. Producing a cria every 11.5 months, a female alpaca is an investment that "splits" annually. Breeding alpacas offers tax-deferred wealth, since there are no taxes at birth, only when an alpaca is sold.
To obtain more specific information, contact your accountant. IRS Publication #225, The Farmer's Tax Guide, is a valuable resource.
