Businesses have traditionally been able to depreciate
eligible business property and deduct the expenses over a several-year period. Section 179 of the IRS tax code was introduced several years ago to stimulate small businesses by allowing them to deduct the full purchase
price of qualified "equipment" or property, all in the year of purchase. Livestock is considered property
that qualifies. The Section 179 deduction has once again been extended through 2015, but at a lower threshold;
this still remains a great time to get into the alpaca business or expand your current herd. The Section 179
election is made on IRS Form 4562 for the year the property was placed into service. For more information, review IRS's publication 225 "The Farmer's Tax Guide", and the IRS Publication 946 "How to Depreciate Property".
Like any other business
investment, consult your accountant.
To check out the current alpacas for sale at Big Red Acres, check out our site at Open Herd, or email or call us for an on-farm appointment.