There was some great news for alpaca breeders in the new Economic Stimulus package signed by President Bush in February 2008! Section 179, which allows the expensing of depreciable business assets, was increased to $250,000 for 2008, and the first year bonus depreciation allowance for depreciable property, was increased to 50% for 2008. Best of all, this is all based on the price of the asset (alpaca) whether you pay cash or finance you purchase!
All of this means that, for most of us (be sure to check with you accountant), much of the first year costs of a financed alpaca purchased in 2008 are now being offset by tax benefits! (Note: These changes are limited to assets purchased in 2008.)
Once again, you need to check with your accountant/financial planner to see just how all of this affects you, but there is no doubt, this is great news for the alpaca industry!
