Alpaca owners and breeders come from all walks of life and choose to invest in alpacas for a variety of reasons. For some, alpacas are purchased for the pleasure of raising them, such as the family with young children who may get involved in a 4H project. Others want a change of lifestyle and career and move to the country to set up their alpaca farm with the intention of farming for profit. In some instances couples continue with their full time jobs and take care of their farm and animals in their free time. Others may have one partner running the farm on a full time basis while the other continues to work. Some alpaca breeders chose to board their animals at another farm and continue with their life in the city perhaps hoping to move to the country at a later date or when they retire.
When alpacas are raised for profit on your own farm, then the tax advantages associated with farming apply and the expenses incurred in raising your alpacas such as feed, veterinary care etc. as well as the depreciation of business property such as your breeding stock, barns and fences, can be set against income. Even if you are boarding your animals you may still qualify for tax deductions. Please consult your tax advisor to discuss your particular situation.
