Farm Loans and Tax advantages

There are many tax advantages to alpaca ownership as well as the financing options available.  Farm loans can be obtained to help with the purchase of animals and equipment.  Here are a few links that may assist you in both of these areas.

Farm Loan Information:

GreenStone Farm Credit Services

Small Farm Funding Resources—USDA National Agricultural Library: Rural Information Center

Farm Loan Programs—USDA Farm Service Agency

 

Tax Information:

CPA/Accountant Search—This site will allow you to search for a CPA or Tax Professional.  This site also has the ability to select Agriculture/Farming/Forestry for a Specialty.  You will want to find a CPA or tax accountant who is very familiar with farming.   

 

Economic Stimulus Act of 2008 Tax Incentives

Business owners can elect to expense up to $250,000 (increased from $128,000) of qualifying property (up to $800,000 in value) instead of taking depreciation for assets put into service in 2008.

Businesses are now allowed a 50% bonus depreciation on assets placed into service in 2008.

Here is an example of how these new tax benefits can be calculated:

A $500,000 asset is placed into service in 2008 

$250,000 may be expensed under Section 179 

$250,000 remains to be depreciated 

A further $125,000 may be expensed as Bonus Depreciation (50% of $250,000) 

Asset now has a $125,000 base from which to take standard 1st year depreciation 

For this example we'll assume 5-year property = $25,000 1st year depreciation 

Total deduction in 2008 is $400,000 on the asset 

Remaining $100,000 cost of the asset is recovered under the otherwise applicable rules for computing depreciation