Now is the best time…

Now is the best time to build or rebuild
an alpaca livestock business!

My friend and successful alpaca breeder, Jim Patrick of Denton Texas, wrote some very insightful information about the future of the alpaca industry recently. When he did… I took notice. Why? Because when he speaks… people listen and for very good reasons!  He has a background in Economics and Sociology and has been featured as a “futurist” in our alpaca community. Here is an excerpt he wrote on the status of the alpaca industry as of Nov 22, 2010.

“As a trend prognosticator and founder of ‘think tanks’ for over 25 years, I am here to share with you that our economy may be morphing into a new and exciting form. People worldwide are looking anew towards a simpler, less stressful life that is filled with natures’ basics. This means basic homes, with high energy heating / cooling systems and earth friendly power generation equipment. The rise of the family farm is upon us with many taking flight to ‘ranchburbia or farmville’ where the air is clean, things are smaller and simpler, and where robust gardens are the norm…times are a changing!

A land is just over the time horizon where wind turbines glow green, kids are home schooled or attend small community schools and virtual offices of man and woman caves are plentiful.  

Yes, changing times are upon us and we, the alpaca livestock industry, are excitingly part of this metamorphosis that is forming the second decade of the 21st Century and beyond. As I have said in countless interviews and speeches, being able to take advantage of the early signs of emerging trends can make a world of difference.

So why alpacas and where do they fit in the new economic and social matrix?

Alpacas are easy to maintain, fit all lifestyles, are odorless, cute, safe and friendly to all ages and they perfectly address the changing paradigm.  

ALPACAS ARE GREEN FRIENDLY… ALPACAS PRODUCE A FLEECE LIKE NO OTHER that is light weight, durable, very warm, hypoallergenic and their end products are gorgeously durable, ultra warm that dare the cold to touch your skin. It is the best of times to expand or enter into the alpaca livestock business!!!!

Alpacas give the investor a special ROI in the form of breeding new animals, producing special products from the fleece and the potential to garner new tax benefits.

Alpacas are easily handled by all ages without fear of intimidation or bodily injury. Owning cattle, equine, sheep, goats or other traditional forms of livestock carry a magnitude of more care and maintenance that greatly decreases their potential return on investment (ROI.) Alpacas can be maintained with less infrastructure and daily care….and their ‘poop’ has very little smell as a bonus and makes a great soil supplement that makes things grow organically!

The alpaca livestock business is not just about the cute and kind nature of these precious animals; it includes investment potential that can provide a nice ROI. Like any other investment, alpacas can carry risks and there are no guarantees, but, alpaca prices have never been lower largely due to the current pause in the economy; however, this is not going to be the case forever. 

So what is the best size alpaca business for you to expand or build to? Well, that depends on your life style, demographic foot print and willingness to take a risk.  

While some alpaca businesses are large… most are small, family owned operations of fewer than 20 head of alpacas with a ‘hands on approach’ being the norm.   

So, now is the best time to either get into the alpaca livestock business, or to enhance the genetic qualities of your current herd leading to an improved ROI. Waiting for our economy to ‘get better’ only will increase your costs and reduce your potential ROI. The times, they are a changing and now is the time to get on board the train to the future with alpacas!”

Jim’s other views are captured on CD # 7 of the http://www.AlpacaBusinessSecrets.com.
 
If you’re ready for alpacas, check out http://BuyingAlpacasMadeSimple.com.

Here’s to your successful alpaca venture, Julie

 

Section 179 is Expanded…

Section 179 is Expanded for This Year and Next

Great News for starting an alpaca business this year, or expanding the one you have with another alpaca purchase… this year. The best time is now… to take advantage of the changes to the Section 179 expensing. Let me explain…

On September 27, 2010, President Obama signed the Small Business Jobs Act of 2010. The legislation contains $12 billion in tax incentives. The major tax provisions of this bill that affect alpaca purchases are as follows:

Sec. 179 Expensing – “The maximum Sec. 179 expense deduction for fixed asset acquisitions (alpacas qualify) has been increased from $250,000 to $500,000 for tax years beginning in 2010 and 2011. The enhanced deduction starts to phase out once qualifying fixed asset additions reach $2 million and is fully phased out when they exceed $2.5 million.

Bonus Depreciation – The 50% bonus depreciation, which had expired at the end of 2009, has now been extended through December 31, 2010. Bonus depreciation can be used to deduct 50% of the cost of new assets purchased in 2010 that do not qualify for the Section 179 expensing.” (Excerpt from Tax & Business Alert bulletin from the CPA firm of Gish Seiden, LLP in Woodland Hills, CA – 818.854.6100]

What this means for you – the alpaca owner.(1) You can elect to immediately expense up to $500,000 of qualified equipment (alpacas qualify as equipment) purchased during the 2010 tax year, rather than depreciate it over time. (In tax year 2009 the ceiling amount maxed out at $250,000 for the year and phased out when the qualified purchases reached $800,000.)

(2) You can take this depreciation this year and next year. So, you can plan your alpaca business acquisitions out for two tax years.

(3) Talk to your accountant about how this immediate depreciation can affect your present tax situation. Ask them about the best ways to expense these purchases and write them off against your “ordinary income”.

(4) One of the ways I took advantage of this expensing was to start a contract with multiple purchases and make a down payment before the end of the year. We wrote the agreement that I would make monthly payments extended out for the next six months. However, my CPA wrote off the whole purchase as If I had paid for it in full. Check with your professional to see if this could help your tax situation out this year.

Remember that I am only relaying this information to you. I am not giving you accounting advice. Please see a professional that can explain how this helps your personal tax situation and the potential for building your wealth with alpacas.

If you are looking for quality alpacas for less this year or next… go to: http://buyingalpacasmadesimple.com to preview some quality alpacas for sale right now. Complete the inquiry form and I will be notified so that we can have a discussion about your interest.

Here’s to your successful alpaca adventure

Julie