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Will you have your own farm or will you board your alpacas?

There are advantages and disadvantages to both types of alpaca ownership. If you own your own farm and have structured your ownership as a business, you may be eligible for significant tax advantages. These include tax free purchases of business related equipment, travel expenditures, and depreciations. Your tax professional is your best source of information on current tax laws and how they apply to your alpaca business. You may choose to board your alpacas rather than be responsible for their day to day care. This arrangement works well for many people who see alpacas strictly as an investment opportunity. The agistor is responsible for the daily care and often helps market sale animals.

Disadvantages of operating your own farm is the 24/7 nature of dealing with animals. For many of us, the commitment required is part of the appeal of alpaca ownership but for others, the demand on our time might not be appropriate for our lifestyle. For the owner who boards his alpacas, the most significant disadvantage is the loss of tax breaks however, this may be offset by not having to make financial investments above and beyond the purchase and care of the alpacas as well as the commitment in time.

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