Alpaca ownership is a rewarding lifestyle. The demand for alpacas continues every year and this demand is brought on by the yet small supply of alpacas available in the United States, as well as the tremendous value of the alpaca fleece. Right now alpacas are most profitable for breeding and the sale of offspring. But, in the future, their fleece will be what positions the alpaca owner directly in the fiber industry, which holds boundless potential. Selective and prudent breeding practices, the scarcity of this unique livestock in the United States and the fact that alpacas usually have only one baby per year are the prime factors that preserve the future value of alpacas in the marketplace.
Tax advantages are an additional benefit to ownership.
Alpacas, being livestock, are depreciable and subject to capital gains treatment. Most all expenses related to ownership such as feed, veterinary fees, insurance costs, supplies and the like are expensed against income. Your tax advisor can guide you through this and should be consulted before entering the business. There are many owners of alpacas who do not want to personally raise their alpacas, they own alpacas for the investment potential and tax benefits. Part of our service to new buyers is advice and counseling.