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Alpaca Library
The
Alpaca (Vicugna pacos) is a
domesticated species of South American camelid
developed from the wild alpacas. It resembles a sheep in
appearance, but is larger and has a long erect neck as
well as coming in many colors, whereas sheep are
generally bred to be white.
Alpacas
are kept in herds that graze on the level heights of the
Andes of Ecuador, southern Peru, northern Bolivia, and
northern Chile at an altitude of 3500 to 5000 meters
above sea-level, throughout the year. Alpacas are
considerably smaller than llamas,
and unlike them are not used as beasts of burden but are
valued only for their fiber.
Alpacas only have fleece fibers, not woolen fibers, used
for making knitted and woven items much as sheep's wool
is. These items include: blankets, sweaters, hats,
gloves, scarves, a wide variety of textiles and ponchos
in South America, and sweaters, socks and coats in other
parts of the world. The fiber comes in more than 52
natural colors as classified in Peru, 12 as classified
in Australia and 22 as classified in America. Alpacas
and llamas differ in that llamas have banana shaped ears
and long tails and alpacas have straight ears and stubby
tails. Aside from these differences, llamas in general
are on average 1-2 feet taller, and bigger in proportion
than alpacas.
In
the textile industry, "alpaca" primarily
refers to the hair of Peruvian alpaca, but more broadly
it refers to a style of fabric originally made from
alpaca hair but now often made from similar fibers, such
as mohair, Icelandic sheep wool, or even high-quality
English wool. In trade, distinctions are made between
alpacas and the several styles of mohair and luster.
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Federal Stimulus Package for Individuals and Small Business to benefit Alpaca Breeders
Latah Creek Alpacas
By Jack Armstrong
President Bush signed the legislation for the stimulus package on February 20 2008. The new package includes important incentives for business, including one especially beneficial to alpaca breeders. Specifically it includes an increase in the small business “expensing limitation” for the tax years beginning in 2008. The law increases the amount that individuals or small business may deduct for purchases of certain business assets, equipment, and other items in the year those items are acquired and put in use. Under the new law, the maximum deduction rose to $250,000. This is commonly referred to as “section 179 expensing” after the IRS code section 179.
Alpaca Translation: The new law increases the amount that alpaca breeders both new breeders and existing breeders may deduct for purchases of breeding stock. This includes alpacas purchased on credit and paid for over more than the current tax year. Your tax savings could potentially be more than your down payment.
For example: You purchase four foundation female suris for a total of $100,000.00. You agree to pay 20% down at the time of purchase and finance the balance over 3 years. The new law allows you to take the entire purchase price of $100,000.00 as a deductible business depreciation expense this year. If you fall in the 35% income tax bracket, your tax savings would be $35,000.00. Your 20% down payment equates to $20,000.00. Thus in this theoretical example you generate a positive cash of $15,000.00.
Tax savings $35,000
Down payment $20,000
Positive cash $15,000
For more details on the stimulus package, check the IRS website -
http://www.irs.gov/
As always, speak with your accountant or tax professional for specific tax advice.
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Alpaca Rose Ranch
"Where
LOVE is Born"
Captain
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