The Alpaca Industry

Planning the best tax structure deal for a farming business is not something to be rushed into at the end of the financial year. If your family business is looking to reduce or eliminate tax or stamp duty implications ahead of a looming restructure, farm succession manoeuvre, or sale, the chances are everybody involved needs to be much more familiar with the way their enterprise operates. more »

Those considering entering the alpaca industry should engage an accountant for advice in setting up your books and determining the proper use of the concepts discusses in this brochure. A very helpful IRS publication, #225, entitled The Farmer's Tax Guide, can be obtained from your local IRS office. The goal of this discussion of IRS rules is to provide the guidelines for discussion with your accountants and financial advisors so that you can be more conversant in the issues of taxation as they relate to raising alpacas. more »

Alpacas were a rarity in the U.S. just 30 years ago, but a fleecing of the tax code has dramatically increased the population. A market for the furry animals’ fleece never took off, but a write-off for the cost of furbearing animals being used to shear tax bills created a demand for the alpacas. Since most of the federal tax benefits are taken in the year of purchase, however, the alpacas are often abandoned when they can no longer be used as tax shelters. more »