This time of year, as we approach the end of the tax year is an excellent time of year to be buying alpacas. Depreciation of alpacas, and especially the IRS Section 179 deduction, provide great opportunities to save a significant amount of dollars.

Between now and December 31, 2007 is the very best time to purchase alpacas. Using the Section 179 deduction to offset your earned income for this year you can have the government provide a 40% discount on newly purchased alpacas. Of course, the exact discount depends on which tax bracket you are in.

The Section 179 deduction is still available and you can currently purchase $125,000 worth of alpacas and receive a $125,000 write-off on your tax return. Check with your accountant to make sure you will qualify before purchasing any alpacas.

Also at this time of year most of the females you purchase will already have been bred to Studs so your alpaca business will be getting off to a flying start. We always breed our females to Studmaster males who are part of the Ideal Alpaca Community so you will know exactly what to expect in terms of quality when the cria arrive next spring.

In addition, if you choose to finance your alpacas you may receive a cash refund from the IRS which can be used to help you purchase other assets needed for your alpaca breeding operatuion. Again check with your accountant to make sure you will qualify.

As we say here at Mulberry Alpacas:

Proper Preparation Prevents Poor (Financial) Performance.