Let Uncle Sam Buy Your First Alpacas

Hello, my name is Coconut Crunch

Hello, my name is Coconut Crunch

If you are making (or are thinking about making) an alpaca purchase – consider this… 2009 is the best year to let Uncle Sam do it for you.

 

Let me explain…

 

The Stimulus Act temporarily extends the higher Section 179 expense amounts available in 2008 for an additional year. Under this provision, business owners can elect to immediately expense up to $250,000 of qualified equipment (alpacas qualify as equipment) purchased during the 2009 tax year, rather than depreciate it over time. This benefit will continue to phase-out on a dollar-for-dollar basis once qualified equipment purchases exceed $800,000.

 

The Stimulus Act also extends availability of the 50% bonus depreciation provision for capital expenditures incurred in 2009. This provision allows business owners to take 50% bonus depreciation in the year that the property is placed in service. In addition, the Stimulus Act extends the placed-in-service deadline for the $8,000 increase in first-year depreciation provision on qualified vehicles placed in service by December 31, 2009.

 

The current difficult economic situation has likely caused many businesses to incur a net operating loss (NOL) in 2008. Before the Stimulus Act, NOLs could generally be carried back only two years and, if there was a tax liability in those two years, taxes paid could be refunded to the taxpayer. For 2008 NOLs, the Stimulus Act extends the two-year carry-back to three, four, or five years increasing the likelihood, availability, and amount of the refund to enhance the business cash flow.

 

[The above information is for educational purposes only. This excerpt is from the April 2009 Tax & Business Alert bulletin from the CPA firm of Gish Seiden, LLP in Woodland Hills, CA – 818.854.6100]

 

Check with your local accountant to see in what ways the Stimulus Act might impact you or your plans to start your alpaca business this year.

 

Just thought you’d like to know!

7 thoughts on “Let Uncle Sam Buy Your First Alpacas

  1. Thanks for your comment Portia! I will be sharing multiple ways to get into the alpaca business in future blogs. Stay tuned!!!

  2. Thank you for this informative e-newsletter. I have been visiting farms since september 2008. Have been offered to rescue 4 Alpacas, will be receiving 4 males in the next few weeks and will be agisting them until I can buy property for them. Just wondering if my boarding fees will be a tax write off for next year?

    Regards
    yvonne

  3. Yvonne as long as you are running your alpace venture as a business … not a hobby, you will be able to write off numerous expenses. Agisting & other services are legitimate costs in the initial years of your business.

  4. Hi Julie,
    Your information has been a tremendous help to me on starting my alpaca business. Talking to an accountant helped me to understand the benefits. I look forward to my new adventure, and strongly recommend your book for anyone starting out.

  5. Hello Julie Roy,

    I have a real interest in alpaca’s and wish to acquire a small herd. With money tight and getting tighter I have looked into some different grants and how to write a grant propsal. It is really hard. From what stated above this is the best year to ask for a grant. Could you please point into the right direction or some helpful areas to start out with.

  6. Chris you are right – this is a great time to get into alpacas and start a herd. Check with your local Agriculture Extension office for some helpful information about your area. They might know about grants to cover some of the initial costs of setting up your operation. Also, you can look at alpacas from local breeders. Most of them will help you out by financing your purchases (frequently at no interest) for a couple of years. That’s what we do with buyers of our alpacas.

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