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Business Opportunities

The Alpaca Lifestyle

Business Opportunities
As you investigate the wonderful world of Alpacas, there are many investment perspectives on the financial opportunities that are potentially available. You will find some full time breeders who make a six figure income and more in the alpaca business. There are also breeders making little more than smiles. Many farms have built their business through years of dedication and have invested in a quality breeding program designed to produce show quality alpacas. Some have made their money through investment speculation with volume exchange as a goal. From a purely investment perspective, the alpaca industry enjoys great returns when compared to other livestock investments. There are multiple benefits and financial rewards that require some dedication and most of all: passion.

Lifestyle Opportunities
Another key factor to the success of the alpaca industry has been the ability to support a lifestyle change for many investors. Alpaca breeders come from all walks of life and with many different approaches to the business. From young couples with children who enjoy caring for alpacas, to retired couples who are ready for a change in career and responsibilities, to the couple who still maintains a working career with one person tending to the alpacas on their new acreage in the country.

Tax Benefits
The major tax advantages of alpaca ownership include the employment of depreciation, capital gains treatment, and if you are an active hands-on owner, the benefit of offsetting your ordinary income with expenses from your farming business. If alpacas are actively raised for a profit, all the expenses attributable to your farming efforts can be written off against your income. Alpaca breeding allows for tax-deferred wealth building. An owner may elect to let his herd grow over time without paying income tax on its increased size and value until they are decide to sell an alpaca. New buyers should research and educate themselves in the advantages and risks of alpaca ownership by talking with breeders and speaking with a tax consultant.

Updated March 10, 2012