What are the tax advantages to raising alpacas?
Let us say at the outset that we are not CPAs or attorneys, so you would be living dangerously to rely on anything we tell you about the tax benefits of raising alpacas. With that disclaimer made, it is true that there ARE tax saving opportunities that may accrue to you by raising alpacas. We enjoy many of them ourselves. For example, operating expenses such as food, veterinary expenses, supplies, travel, advertising, etc., may be deductible. IRS codes allow for the depreciation of alpacas as assets. In many states, agricultural exemptions may be sought to reduce real estate taxes. But, you absolutely need to consult with an accountant or attorney whose job it is to know with certainty how you might benefit from investment in alpacas given your specific situation. We would suggest that you consult someone who would also be willing to accompany you, should you ever be asked to sit across the desk from an IRS examiner to explain your return. For more information on the tax advantages of
