[Update] Section 179 Year-End Tax Planning for Alpacas

One Last Day in 2012

One last day to make a difference in your tax savings.

alpaca-brothersI found a news alert dated Dec 18, 2012 on the website Section179.org about some important tax planning implications updated for the 2012 tax year-end. Here is a reprint of a portion of it.

Even if you are not going to make a purchase today, I want you to think back about the purchases you have made over the year. There may be some qualified purchases in 2012 that you could claim for the Section 179 immediate deduction.

The main thing to remember is that alpacas qualify as used capital equipment even if you have only made a down payment so far this year. Other purchases you might have made to build your alpaca business could possibly qualify as well. To be sure, check with
your accountant about the details.

I just want you to have every advantage possible for your alpaca venture.

Here is the 12/18/12 article:

“Both the ‘Tax Relief Act of 2010’ as well as the ‘Jobs Act of 2010’ that passed in late 2010 affected Section 179 in a positive way for this 2012 tax year. Following are the highlights for the 2012 tax year:

To take advantage of this deduction, your Section 179 Qualified Financing and your equipment must be in place on or before December 31, 2012.

2012 Deduction Limit = $139,000
Section 179 Deduction limit after adjustment for inflation has increased to $139,000 (maximum allowance would have been only $25,000 prior to the new legislation).

2012 Limit on Capital Purchases = $560,000
Section 179 Threshold for total of equipment & software that can be purchased has increased to $560,000 (threshold would have been only $200,000 prior to the new legislation).

2012 Bonus Depreciation = 50%
The new law allows 50% “Bonus Depreciation” on qualified assets placed in service during 2012

Section 179 Deduction is available for most new and used capital equipment, and also includes certain software.

Bonus Depreciation can be taken on new equipment only (no used equipment, no software)

When  applying these provisions, Section 179 is generally taken first,  followed by Bonus Depreciation – unless the business has no taxable profit in 2012.”

Please Note:

Did you know that right now the projected 2013 Deduction Limit is sitting at $125,000 as the maximum amount you can deduct, and that’s going to fall to $25,000 in 2013. I really hope our leaders see that $25,000 just isn’t going to cut it and give Section 179 a nice bump up in 2013. They’ve done it before.

May you have an even better year ahead!! And if you haven’t started your alpaca venture, may 2013 be the year that you make your dreams come true. I’ll be here to share with you more valuable information from the alpaca community.

All the best,


Julie Roy
951-763-4222 (Pacific time)