Alpacas at Tucker Creek Blog

One Skein Projects

2012-01-22T14:25:00.000-08:00

To make things a bit more fun as we go through winter, thought we would post some of Peggy's favorite fiber projects. Hopefully, they will be posted once a week . . . or so (sorry, the weeks fly by quickly at times). They might be a one skein knitting or crochet pattern or a small felting project or maybe even a pattern she has found online that she really likes but hasn't tried yet. We can all try it out together and compare our likes and dislikes.

The first one will be a request from Hailey Parker from Snowy River Alpacas. She wants to try the slouchy hat previously shown on our blog and Facebook. It is a free pattern found online by Marilyn Losee. The one in the pattern had flowers on the side . . . which not being a very girly girl, Peggy didn't add to her design. Just follow this link to the pattern.

It is a hat where you could easily change up the design by just substituting some other pattern other than the moss stitch. You just need to select some combination of stitches that will fit within the numeric pattern of 84 stitches (one time around).

One note to the pattern. It can be done on straight needles such that you sew a seam to finish the hat or it can be done on ciruclar needles. If you follow the pattern it instructs you to purl the even numbered rows when you get to the crown of the hat. If you knit on circular needles you will want to knit those rows since you won't be turning your project the same as with straight needles.

If you have any questions, just email Peggy. If you want to purchase some yarn for this project, Peggy used Grey Super Fine Luxury Alpaca (of course) which is available on our site. Keep me posted on how you like the pattern.

Fiber Artists Invited to Tucker Creek Store

2012-01-05T22:32:00.000-08:00

A customer came into our store the other day and was sharing with her daughter that she was going to learn to knit this year so she could start now on her Christmas list and make all of her 2012 gifts. How awesome is that? That got us thinking about creating a fiber arts group which meets at our store to visit, share ideas and help promote the value of these various art forms. Starting this month we are inviting all fiber crafters (young, old, experienced or novice) to join us in our store whenever we are open (which currently is from 11:00 am to 4:00 pm Friday and Saturday).

If you are interested in a private knitting or crocheting lesson we will be offering those at $30.00 per hour (includes a $20.00 skein of yarn). Just call us or stop by the store. We are also in the planning stage for several seminars on various forms of felting. We have finally found some wonderful uses for our lesser quality fiber which turns into some lovely items when felted . . . so keep watching our posts as we will be sharing the results as we test these methods out.

The photos below show our latest hat design being worn by our favorite barista, Tammy from Coffee Girl here in Astoria. Isn't it cute? If you would like one of your own or for a gift, they are available in our store or online for $40.00 plus shipping.

Hope you stop by the store soon--online or on Tucker Creek--to see what's new.

IRS Announces 2012 Standard Mileage Rates

2012-01-01T15:40:00.000-08:00

IR-2011-116, Dec. 9, 2011
WASHINGTON — The Internal Revenue Service today issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

55.5 cents per mile for business miles driven

23 cents per mile driven for medical or moving purposes

14 cents per mile driven in service of charitable organizations

The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev. Proc. 2010-51.

Notice 2012-01 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

Related Item: IR-2011-104, In 2012, Many Tax Benefits Increase Due to Inflation Adjustments

Times are changing and so are we

2011-12-28T21:17:00.001-08:00

To say that I have been lax in updating our blog is truly an understatement. But, that is about to change. There have been lots of changes over the last couple of years for us personally as well as the alpaca industry. And where has the alpaca industry traveled . . . right to where David and I felt it should have been from the beginning . . . it is now a fiber business . . . imagine that.

When we started raising alpacas in 2003 we were frustrated by the lack of quality alternatives to process the fiber (there were not sufficient mills that knew what to do with the fiber . . . even the co-op we first joined was sending the fiber to Peru bringing back a product with the words “made in Peru” on the label); and what was fiber supposed to look like when it was ready to be sent to the mill for processing (no one really seemed to be able to define what sorted fiber should look like until NAAFP came along). Now I know these are all issues that would probably not be issues unless you are anal like me . . . and thank heavens there were plenty like me who came up with answers to these questions.

So, here we are . . . 2012 is about to start and alpacas for the most part are selling for a fraction of what they were selling for when we started in the business. So wise breeding decisions are still a huge issue maybe even more so. Back then just about any female could sell for over $10,000 . . . that is no longer the case. Today's breeder needs to be even more aware of what they are creating as the fiber has become so much more important. Maybe more members of your herd should be retired or removed from the gene pool as the dollars no longer can justify compromised members of the herd. Years ago a trip to the nearest veterinary hospital could easily result in a $5,000 bill with no guarantee as to the results (we were in that position and were thrilled when our female returned home three weeks later). Those days are gone. Today we need to have a reality check and truly analyze what we are trying to accomplish with each breeding (one of the areas where the certified sorted method and EPD's (expected progeny differences) come in so very handy . . . each year you can review your reports to see how their current yield compared to prior years and other members of your herd, how do their offspring look . . . was it better than the mom? Is it what you were looking for. If you are just getting year after year of texas rug grade fiber then there is no point in continuing to breed that female . . . unless of course your goal is rug making.

So, before you get the wrong idea on where I am coming from, let me cut to the chase. The alpaca industry is not dead . . . just finally realistic. If you are an existing breeder, use all the tools at your disposal to make educated breeding decisions and be ready to make some hard decisions. If you are new to the industry, then you can start using all the available tools as part of your buying process. The price of entry is much more user-friendly than eight years ago when we started.

So get ready to see a whole lot more action on our blog . . . a lot more fiber related, a lot more conversations on what to do with the fiber and what we are doing with our fiber. If you have questions, please feel free to send them our way and we will post your answers online so we can all learn. Our farm store is now open on Friday and Saturday from 11:00 am to 4:00 pm and, as always, by appointment and online. Hope you can drop by and see what we are working on.

Wish you all a successfull and enjoyable 2012!

New IRS Mileage Rates for July through December = 55.5 cents per mile

2011-09-15T12:47:00.000-07:00

IRS Increases Mileage Rate to 55.5 Cents per Mile

IR-2011-69, June 23, 2011

WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.

The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.

"This year's increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices," said IRS Commissioner Doug Shulman. "We are taking this step so the reimbursement rate will be fair to taxpayers."

While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.

The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

The new rates are contained in Announcement 2011-40 on the optional standard mileage rates.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Here is the link for the changes per type over the last several years.

http://www.irs.gov/taxpros/article/0,,id=156624,00.html

It's definitely time to start thinking taxes. So, take this info and start planning for year end issues. Tax time will be here before we know it.

Breeding decisions do not just affect the next years crias!

2011-06-16T14:50:00.000-07:00

This is a great article that was in the most recent issue of The Coarse Broads Newsletter and I felt it very appropriate to share it at this time of year when many of us are shearing.

Every time you make a breeding decision, you are affecting how alpaca fiber is perceived in the minds of not just the textile industry but also the minds of the consumer. Over the course of this year, we have seen a rather large increase in the size of primary fibers in relation to the size of the secondary fibers. Which is a step backwards in uniformity.

Why does that matter? When the primary fibers are 3 and 4 grades above that of the secondary fibers, it creates all sorts of problems in the end product.

This is what we call "hairy" and unfortunatly so does the majority of the consumers who are currently buying alpaca yarns commercially.

Bottom line, it makes an undesirable product that the consumer will never buy again.

We have the perfect storm brewing with Alpaca United generating an enormous amount of press about North American Alpaca Fiber. We need to do our part as breeders by making the best commercially viable fiber we possibly can. This is an opportunity we will not probably ever see again. If we don't step up, we will have no one to blame but ourselves.

We do this by breeding for more uniformity in the fiber. Specifically the primary and secondary fibers closer in grade and character. The wool industry is leaps and bounds ahead of alpaca in this catagory already. Check out the photos.

Suffolk wool which is very uniform. The primary fibers are almost indistinguishable from the secondaries.

Alpaca fiber - You can see how much bigger the primary fibers are in comparison to the secondary fibers. This sample histograms at 20.4 microns. Even thought that falls within the grade one catagory, it would result in a "Hairy" product.

I challenge you to have 3 or 4 alpacas fiber (neck and blanket fiber) sorted by a sorter in the Certified Sorted® System. When the sorter is finished you will have 2 things you can get no where else.

1. An inventory sheet that outlines what these 3 or 4 alpacas produced by grade and also the amount of profit you stand to make at both Wholesale and Retail thru NAAFP. As well as a way to calculate what it cost you to grow your fiber, so you know just what you need to make off of it. (It cost me $21/ lb this last year)

2. The Alpaca Dating game. A way to use the sort records to make breeding decisions for improving your fiber.

Make 2 breeding decisions using The Alpaca Dating game. Next year you will be amazed at the results.

Joining A Fiber Cooperative . . . which one is the correct one?

2011-04-06T14:12:00.000-07:00

This question was just posed to us and we don't really have a perfect answer. You need to look at the characteristics of each one and work with the one that mostly closely fits your business model. It is truly not a one size fits all question. We belong to two . . . NAAFP and AFCNA

We work with NAAFP (North American Alpaca Fiber Producers) because you have a certified sorter at the farm (or sorted at a later date from the bag) who sorts your fiber by color, length and micron so that by the end of shearing day you know what alternatives you have with each group of fiber. If you have a specific animal you want to save for your own purpose to send off to a private mill or process yourself, you can make that decision when it hits the sorter's table. The rest of the fiber you can choose to send to the cooperative to be used in its product line being returned to you as finished product or to remain in the cooperative to be sold at either the retail or wholesale level. Without a sorter, we don't feel there is sufficient information to make those decisions. Plus the sorting process gives you some really important information on the animal's fiber with which to make future breeding decisions. Here is the link for other farms who are members of NAAFP--just click on the link for your area of the country to see if any farms near you are members.

We are also members of AFCNA (Alpaca Fiber Cooperative of North America). When you send fiber to the coop you are given the opportunity to purchase from them and other vendors at a wholesale price. They have some nice products but we have not had the patience waiting for a return on our investment of fiber so we have not sent them any fiber since we started sorting. You can talk to AFCNA members in your area for more information. Looks like there is a new link for members that is being slowly populated as members edit their profile information. Here is the link for their membership.

There are others coops around the country but before you join, you need to be sure what your farm's end goal is regarding the end use of your fiber.

Sun Tzu is Breeding in California

2011-03-18T16:52:00.000-07:00

Peggy is twitching cause our big guy is off the farm. But if you are in the central valley of California, give Susan Moore and Brian Ellison a call and check this guy out. We have been very pleased with his offspring. For the first time ever Sun Tzu will be available at a farm other than Alpacas at Tucker Creek as he will be standing stud at Round Mountain Alpacas from mid-March through the end of June, 2011. Contact info: Office 559-240-6137; Cell 559-289-5032; Email susanm@roundmountainalpacas.com.

Got the phone call early this afternoon that despite a timeout required at the beginning of the transport (I guess I should thank Randy Coleman for that one) he is settling in to his new digs . . . complete with a Pyrenees name Sonny. Who knew he could be tolerant of a big white dog . . . or anything with four legs other than an alpaca . . . he typically chases everything that enters his domain. At least for the time being he probably figures that the area where he is belongs to Sonny.

So take advantage of this opportunity and check him out.

Live Chat Added to Blog

2011-02-03T03:27:00.000-08:00

Remembering back to when we first started researching alpacas, we had what seemed like a never ending list of questions. And, we didn't have just one list, it seemed they were all over the place so we would not lose track of our questions. Now that is not necessary. We have just added AlpacaAnswers to our blog (and soon to our website as soon as I can master the html commands to activate it). So now when you have a question just click on the LiveSupport button and ask it while it is still fresh in your mind. Whenever we are on the computer it will be live so that we can begin a dialog to get you an answer quickly and if we are away from the computer it will leave us a message that we will respond to when we return. Pretty simple!

Social Media is lost on me . . . sorry!

2011-01-14T15:44:00.000-08:00

I've tried Twitter and Facebook . . . so far have not been able to find a productive business purpose. Goodness sakes . . . I don't even like texting. I've finally resigned myself to leave the 140 characters required by Twitter behind and quit worrying about coming to terms with social media. I seem to be able to handle the concept of a blog . . . though not as regularly as I would like. That is one of my goals for 2011 . . . don't want to say resolutions . . . that would already be setting myself up for failure given the American propensity for not fulfilling resolutions . . . but I am going to try to be more regular in my postings on the blog. You can all be my watch dogs. If I'm not posting often enough send me a line and let me know what you would like to hear about or pose any questions you currently have. We will do all we can to provide an answer or find someone who can answer your question.

Wishing you the best for 2011. We are definitely in a new era for alpacas. The economy has had an impact on every segment of our lives and over the next few months we will be trying to share what can be done to maximize your alpaca bottom line in light of our current economic issues. Stay tuned! We would love to hear what you have to say!

Oops . . . made a mistake on last entry

2010-12-29T18:40:00.000-08:00

In the prior blog entry there is reference to the most recent tax law regarding bonus depreciation. It was stated that the 50% bonus depreciation was extended through 2010. That was an error . . . here is the corrected info:

A 100% writeoff in the placed-in-service year of the cost of property eligible for bonus depreciation under Code Sec. 168(k) . This will apply for property acquired and placed in service after Sept. 8, 2010, and before Jan. 1, 2012.

A 50% bonus first-year depreciation allowance under Code Sec. 168(k) for property placed in service after Dec. 31, 2011, and before Jan. 1, 2013.

So bottom line, Bonus Depreciation is going to be around through the end of 2012. Now that is a planning opportunity. And remember . . . there are no offset limitations to bonus depreciation . . . it can offset earned income, interest, dividends, pensions, rental income, capital gains . . . any kind of income. The only stipulations . . . the assets must be NEW and placed in service by the end of the year to be eligible as a deduction for that year. A new alpaca is a male or female of breeding age who has not yet produced a cria.

Sorry for the error . . . but what great news!

Expanded Tax Deductions + Great Sales Prices = Exceptional Year End Opportunity

2010-12-28T00:15:00.000-08:00

Just the basics for this entry. The IRS has expanded the Section 179 Deduction available for 2010 and 2011 to $500,000 with a purchase ceiling of $2,000,000. They have also extended the 50% bonus depreciation through 2010. Both of those deductions make year end buying a great tax strategy.

When you couple those deductions with our year end sale, you have an opportunity to maximize your tax deductions while getting exceptional values. Select any alpaca on our sales list and get the second one for free (of equal or lesser value). For example, if you were to select Bella (list price $7,750) and Chloe ($6,750) you would get them both for $7,750.

So start pondering your tax situation and pick out the alpacas that will enhance and or diversify your breeding program. Just make your decision by midnight on December 31st for it to apply to 2010.

Our Buddy Dick

2010-09-11T07:11:00.000-07:00

DICK FANDRICH

08/31/1929 to 09/09/2010

Many of you who have visited our farm over the years met our buddy, Dick Fandrich, so we wanted to take this opportunity to share with you that Dick died late Thursday night of congestive heart failure. He would always tease that to know him was to love him and for the most part that was true. Doc Hunter phrased it well when he said Dick was one of those very funny, larger than life guys who just kept defying death. He'd had a stroke over ten years ago, multiple heart attacks and next to no concern for his diabetes. Years ago during one of his more challenging health related days he chose going to breakfast over going to the emergency room as he was concerned when they allow him to eat. We eventually went to the ER but not before he had his favorite breakfast. He was everything from an airline mechanic to a bus driver to a detective sergeant for the San Francisco Police Department to a real estate broker to a marketing entrepreneur and who knows how many other different professions over his 81 years. More than anything he was a devoted husband, father, grandfather, great grandfather, friend and dreamer with patience beyond that of Charlie Brown and his football. He believed what you told him and was one of the most optimistic individuals you would ever want to meet. He will be truly missed.

Be Careful What You Name Them

2010-09-01T17:00:00.000-07:00

Many of you know that Peggy's mom moved into our home late last year and remodeled the area that formerly was our office. She has been helping come up with names for our new arrivals.

When the little munchkin to the right arrived Mom could see from her window that she was quite small compared to some of the others who had arrived this year. Mom's family is from Yugoslavia and the language is Croatian. The word "tiny" in Croatian is "mala". So she called us down in the pasture to give her suggestion as to a name for our latest addition to the herd. Peggy thought it was quite appropriate but noticed that our friend, Felipe, immediately smiled upon hearing it. So not being the greatest at remembering her Spanish, Peggy asked what does "mala" mean in Spanish . . . many of you know the answer . . . bad girl. My mother felt it wasn't appropriate to label a perfect tiny little girl with a name that was so unappealing . . . but how could you not!

So, the perfect tiny little girl is Tucker Creek's Mala and she is doing her best to deserve that moniker.

We have had times before where we named a critter and they just became their name . . . like Tucker Creek's Bungee Buuud . . . we had to add mesh to the tops of the gates so he wouldn't jump through to get back to mom when he was weaned . . . not to mention what a treat he was to weigh. So, becareful what you name them . . .

Two Cooked Long Enough to Become Girls!!!

2010-08-31T19:48:00.000-07:00

The two most recent deliveries were both female . . . yeahhhhhh! But one delivered on day 384 and the other on day 365. The obvious question, of course, "did you mess up the breeding dates" and the answer to both is a very clear NO. Each of the ladies was bred only once . . . pretty tough to confuse. And thank heavens the second took a year . . . she was only 13.2 pounds . . . you would not have wanted her to come out any sooner. Both are very healthy.

The first born on August 1 (day 384) is named Tucker Creek's Astoria and she is the product of Cordelia and Sun Tzu and true to her father's contribution has incredibly dense crimpy fiber.

On August 23 Khani delivered a beautiful Sun Tzu baby girl named Tucker Creek's Mala on day 365. It was Khani's first delivery and it was truly text book. She may be tiny but makes up for it in spirit.

The next group of cria should start arriving around Labor Day. Ten to go . . . five are ours and five are client animals. So there are still some opportunities to buy bred females and have a cria in 2010 AND take advantage of the tax benefits available this year but currently scheduled to go away in 2011. Amor, Chloe, Gidget and McKenzie are all bred to Hemingway's Bogart.

A Dozen and Counting . . .

2010-08-02T00:40:00.000-07:00

Here is the count down to date . . . a dozen on the ground . . . nine boys and three girls . . . all out of Sun Tzu except for one beautiful girl out of a Glacial Storm son.

June 19 - Marcella presented Susan Jones of Oregon Coast Alpacas with a feisty little man who is officially named Sinclair. That did not stay his name for very long. He was born the day before shearing day and there was a plethora of experienced alpaca people on the farm . . . including Carrie Hull of Coarse Broads and Timber Basin Alpacas and Hailey Parker from Snowy River Alpacas. Maybe the poor little guy didn't have a chance with the three of us checking on him. None of us ever saw him eat, pee or poop . . . yet he gained weight, was as active as could be and was in the middle of everything. Think he was just testing the stupid humans. He was nicknamed Sly . . . and Sly he was and is. He continues to be the ringleader of this year's crias.

June 22 - a foursome. My friend, former llama breeder and fiber artist, Rose Power, came over to check on the results of shearing day. Little did she know she was going to have the opportunity to test her old mid-wifrey skills . . . three of them came within a twenty minute window. Great fun . . . and only one little girl out of that quartet. Loki delivered a handsome dark brown and white male . . . a spinner's dream . . . multiple colors out of the same animal. Queen Amidala presented us with a little moustached dark brown male who became Hunter (named after our very own vet, Russ Hunter). Elana presented Becky Hay of Autumn Meadows with a handsome almost black male named Zhavago. He is very precocious and will come and lay next to you in the pasture. Then came our beautiful little fawn female, Aurora, out of Tiffany and Duke . . . the last breeding of a Glacial Storm male. Do miss that guy.

June 23 - Another little girl, this time for Susan Jones of Oregon Coast Alpacas. A gorgeous light brown female named SuzieQ.

June 25 - Lollipop delivered her first cria, a very handsome light fawn male that Peggy's mom named Tucker . . . seems appropriate that we have a future herdsire carrying the name of the farm. Then twenty minutes later Chelsea's Athena delivered another very handsome male (and he is very white) who is named Quartz.

June 28 - Skyla had yet another male name Lava . . . the trend was getting a little overwhelming at this point.

July 10 - We had planned a trip to San Diego with great care to make sure the first wave of cria all had delivered prior to leaving. Well . . . what do they say about the best laid plans . . . on the day we were scheduled to leave two of the girls had yet to deliver. Peggy was just ready to jump in the shower (cutting it as close to flight time as possible) and of course there was a head and two legs hanging out of the back of Jasmine. So it was rush down to the pasture to make sure all was good (find out it was yet another boy) and make a quick call to Susan Jones from Oregon Coast Alpacas to see if she could come over and complete the rest of the duties . . . luckily she was available and all was good . . . Thank you, Susan. The other who was scheduled to deliver prior to our leaving town just delivered today . . . on day 384 . . . and no there was no confusion on her breeding date as she was only bred once. So much for planning. His name you might ask . . . this is a David naming philosophy. We had yet to come up with a name for him so David resorted to his tried and true method . . . Jasmine's little man was our 80th male . . . so David said to name him Boy 80 . . . so we tried to make it a bit more warm and fuzzy so we made it Spanish . . . Nino Ochenta.

July 26 - Katrina presented Autumn Meadows a very crimpy dense grey male named Bayou.

August 1 - And today, Cordelia delivered a GIRL, the wait was worth it. She is dark fawn and Peggy's mom thought we should have a girl named Astoria . . . after the town we live in. We thought that was a pretty name.

That catches us up on this year's deliveries. We only have one more we are waiting on for this group . . . Khani out of Hemingway's Bogart and K-2's Chandra. It is her first. She is not acting at all concerned and is on about day 342. Her line typically results in girls . . . her granddam, Karoline, has only had four girls out of six to date; her mother, Chandra has had no boys out of four cria to date . . . let's hope Khani follows in their footsteps and helps improve our ratio of male to female cria.

So I'm posting this entry even though it is not completed. It is missing all the photos and a lot more links. I'll start that part tomorrow. It will make me feel a bit more caught up.

Failure to Post--No excuse!!

2010-07-31T01:07:00.000-07:00

As you can see it has been three and a half months since we have posted to our blog. Is there a reasonable excuse--no. So we are not going to bore you with one. Babies are on the ground and more on the way; shearing is over; this year's cut is at the coop (thanks to Carrie); farm visits are scheduled (including Alpaca Farm Days at the end of September) and we are gearing up to open our farm store with all the beautiful products from the coop (NAAFP).

We'll be adding posts over the next few days. But to get started here are a few photos taken during our shearing weekend by a very talented local photographer, Jennie Kendrick. It is a great shot of the farm--but all the critters are in the barn patiently (or impatiently as the case may be) waiting their turn with the clippers.

And I just loved this shot of Sun Tzu . . . what more can we say . . . he's got it all . . . and he is just plain cool.

So, check back soon. Several of the topics have surfaced because of questions we have received recently via email or the phone from soon to be alpaca breeders; others are just updates on what is happening in the realm of Section 179 and Bonus Depreciation (will they or won't they be extended for 2010 or future years); and of course, there will be the photos of this year's cria.

AlpacaLease - a division of Alpacas at Tucker Creek

2010-04-16T15:19:00.000-07:00

Today's economy is causing us to carefully watch how we spend our money but even more carefully how we can save money. Let's face it, the cost of entry into the alpaca business or any business can be down right daunting. AlpacaLease is designed to make entry into the alpaca business much more user-friendly. But it is also designed to make herd diversification a lot less costly as well.

AlpacaLease does not require any long term commitments--you select the time frame.

AlpacaLease has no monthly payments--just one payment at the start of the lease period based on 15% of the selling price of the animal--male or female.

Should you decide to purchase the alpaca you leased, every dollar you paid in lease payments will be applied to the purchase price.

So if you have been hesitating to enter into the alpaca business but were concerned about taking that step because of the cost of entry--consider leasing. If you lease a bred female, at the end of the lease term you own the cria. If you are leasing a male you can breed as many females as you wish (including outside breedings) for one flat fee. You treat the animal as if it were your own. You are required to maintain mortality insurance based on the selling price of the animal. The males must also have fertility insurance.

If you are an experienced breeder and have considered herd diversification but have been procrastinating in this economy this could be the answer--whether you lease a male or female you could add the diversity you have been wanting for a very economical cost.

Any of the animals listed for sale on our site are eligible for the AlpacaLease Program. So whether you are new to the industry or an experienced breeder with AlpacaLease you can bring flexibility and diversity to your breeding program. If this interests you, please feel free to contact us at 877-915-0522 or peggy@alpacalease.com.

Local Newspaper Highlights Alpacas at Tucker Creek

2010-04-16T13:01:00.000-07:00

Recently Bob Duke, the business reporter for the local newspaper, The Daily Astorian, selected us for an interview for his column entitled "Making the Dollar". Each week he features a local business asking them the same four questions. We were not sure how he was going to handle it since we are not exactly a traditional store front type of business--but he did a pretty good job. See what you think! Click here to read the article. The cria is Ace owned by Susan Jones of Oregon Coast Alpacas. What a handsome little man.

TESTING THE ALPACA INDUSTRY . . . HOW CAN THAT BE DONE WITHOUT A LOT OF MONEY!

2010-03-19T00:45:00.000-07:00

Today’s economy has most of us wondering what it is going to take to turn things around. There are lots of theories and much is being tested. Being a rather conservative retired accountant I believe in a very conservative approach. Do what you can . . . today. If you have a goal, make careful slow steps toward that goal. Being an alpaca breeder, I want people to buy alpacas, breedings and alpaca related products. What can be done to encourage a market with so many problems to purchase any of the above?

Guess, we all just need to be creative and do what we can to work together. So if your goal is to have alpacas but in this economy it just seems really scary . . . test the waters. But how do you do that?

1. Buy a few males to make sure you enjoy having them around. After you are confident you want to take the next then you can think about females and the higher price tag that comes along with them.

2. Buy a package of females that includes their breedings for the first two years. That way you can concentrate your efforts on developing your business knowing that you are not required to come up with those additional funds.

3. Lease a package of bred females. Now there is a concept. How do you lease an alpaca? The farm agrees to transfer all care and responsibility for the animal for a specific period of time . . . a year for example. In that year you are completely responsible for its care . . . feeding, husbandry, shearing, veterinary care, insurance . . . just as if you owned it. At the end of the year you have a cria who will be yours . . . free and clear. You now just need to decide whether you want to continue leasing that particular female or return her.

It is truly a time for us all to get creative (regardless of our industry) and find methods that work for a wide scope of customers—we are not in a one size fits all economy. This is a wonderful industry and we need to craft different financial tools to allow more people to join us without creating huge monetary obstacles in their paths.

So if you have been sitting on the fence wondering whether alpacas are right for you . . . give a call to your favorite alpaca breeder and see if they can come up with a plan that will work for you.

President scheduled to sign legislation to extend increased Section 179 limits through 2010

2010-03-17T19:58:00.000-07:00

President Obama is scheduled to sign the Hiring Incentives to Restore Employment (HIRE) Act tomorrow. It contains a variety of provisions to encourage employers to add employees to their payrolls and to invest in equipment. The provision we are noting today relates to Section 179.

CODE SEC. 179 EXPENSING

For 2009, the maximum Code Sec.179 deduction was $250,000 and the phase-out limit for qualifying property purchased during the year began at $800,000. First introduced in 2008, enhanced Code Sec. 179 expensing expired on December 31, 2009. Without legislation, Code Sec. 179 expensing for 2010 is limited to $125,000, with a $500,000 cap (both adjusted for inflation). The HIRE Act extends enhanced Code Sec. 179 expensing, at the $250,000/$800,000 threshold levels, through December 31, 2010.

Unlike bonus depreciation, Code Sec. 179 expensing is available on both new and used property. Also unlike bonus depreciation, the $800,000 qualifying property ceiling for Code Sec. 179 property effectively limits expensing to small businesses. Finally, Code Sec. 179 is keyed to the business’s tax year rather than the 2010 calendar. The extension under the bill applies to purchases made in tax years beginning after December 31, 2009 and before January 1, 2011.

The HIRE Act does not extend bonus depreciation.

A very sad day at Tucker Creek

2009-12-30T03:42:00.000-08:00

All who have visited our farm know we have a variety of four legged critters. Two of which are Texas and Tess. On Monday afternoon Texas Lightning (as was his registered name) was euthanized after being treated by our veterinarian over the weekend. Upon necropsy it was found that he was bleeding into his abdomen and had a basketball sized tumor around his kidney.

Texas was 27 and appeared as healthy as a horse half his age. He is painfully missed by all of us humans but that loss is nothing compared to the loss felt by our dear little mare and his long time pasture mate, Tess.

It is amazing the role he played beyond just being a great horse--he also helped us to locate Tess. Tess has always been a bit of a Houdini from the time she was a young filly. The first thing every morning we look out to see where the horses are. Texas was always easy to find--being bigger than Tess and a paint he always stood out in the pasture--and that is where he generally was as he did not have the Houdini tendencies that Tess has. So all we had to do was find Texas and Tess would be somewhere near by as he would stay near her even if she chose to morph herself into the area between the pasture and the creek (none of us has ever seen how she gets over the fence). Tess would be witchy to him from time to time but he would always be at her side--sometimes painfully for him.

So it has been a very painful goodbye to a very dear friend.

2010 IRS Tax Calendar

2009-12-26T19:00:00.000-08:00

What a concept . . . the 2010 IRS Tax Calendar has been released and is quite a handy tool. It is not only a traditional calendar with the various tax deadlines we all need to follow but the online version also has links for what is new, forms and publications, helpful tips on what to do when you receive a notice as well as a list of resources for most tax related issues.

Many times the IRS website can appear quite overwhelming; however, the calendar has links to get you to the same place without the daunting official appearance. The hard copy version is free but is currently out of stock--so check back in a few weeks. The online version is a great link to add to your favorites. Here is the link:

http://www.tax.gov/calendar/

Astoria Fiber Arts Academy

2009-12-16T10:36:00.000-08:00

When the email arrived describing the Astoria Fiber Arts Academy Peggy might have been as excited as when she got the initial email from Robyn Kuhl and Carrie Hull describing fiber sorting. Could not believe that such a cool resource was going to be right at our finger tips. Here is a short description of what they plan to offer the community:

Opening January 2, 2010

The Astoria Fiber Arts Academy welcomes visitors to its location in downtown Astoria, Oregon.

Visitors will find several communal work areas - one for weavers and their looms, and a second area for hand-held crafts such as knitting, crocheting, and embroidery.

The Academy has a retail outlet where one can purchase locally dyed yarns as well as products created by local craftspersons.

Classes are offered in over nine categories of fiber arts. Immersion classes are weekend long sessions designed for both local residents and visitors to the area, with options to stay in local hotels within walking distance of the academy. Individual classes are offered in specialized topics.

Alpacas at Tucker Creek is already a member and Peggy has signed up for a rug weaving class in February and has offered her services as a volunteer and/or instructor. This is a wonderful new resource to our area that blends well with our overall business philosophy and warrants our support.

We will keep you posted on the rug making success--Peggy is just a novice--but maybe we will have an opportunity to create an alternative for processing our lowest grade fiber without incurring the freight costs of sending them to Texas. " I'm a rug making newby--I can dream."

IRS Announces 2010 Standard Mileage Rates

2009-12-03T23:14:00.000-08:00

The IRS has released the standard mileage rates for 2010. There is a 5 cent reduction in the standard mileage rate for business purposes. The full report as issued today appears below:

WASHINGTON — The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 50 cents per mile for business miles driven

• 16.5 cents per mile driven for medical or moving purposes

• 14 cents per mile driven in service of charitable organizations

The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Revenue Procedure 2009-54 contains additional details regarding the standard mileage rates.

Year End Tax and Business Plan Seminar

2009-11-21T12:57:00.000-08:00

Mark your calendars for Saturday, December 5th as Peggy & Fred Kraft from Northwest Alpacas will be presenting their tax and business plan seminar just in time for year end tax planning.

Ideally, people who are considering purchasing their first alpacas will take this class before they spend their money. Most successful businesses start with a plan and we will help you create one for the alpaca business. But this is also a great class for anyone wanting an update on alpaca tax issues.

This class is being presented at Northwest Alpacas in Hillsboro, OR. There is a special year end rate of $25.00 so be sure to call or email Peggy or Fred directly to take advantage of this offer. Here is our contact info.

Peggy Stevens
Alpacas at Tucker Creek
peggy@alpacadigest.com
www.alpacadigest.com
877-915-0522 Toll Free

Fred Kraft
Northwest Alpacas
fred@alpacas.com
www.alpacas.com
877-788-3627

Look forward to seeing you on the 5th and feel free to send us any of your tax or business plan questions before or after the seminar

Section 179 and Other Items Adjusted for Inflation for 2010

2009-10-23T10:40:00.000-07:00

Here is the announcement we have been waiting for--the limitations for Section 179 for 2010. For taxable years beginning in 2010, under §179(b)(1) the aggregate cost of any §179 property a taxpayer may elect to treat as an expense cannot exceed $134,000. Under §179(b)(2), the $134,000 limitation is reduced (but not below zero) by the amount by which the cost of §179 property placed in service during the 2010 taxable year exceeds $530,000. This is a huge reduction from the 2009 limitation of $250,000 on purchases not exceeding $800,000. Clearly 2009 is the year to make the bulk of your business asset purchases (and this certainly includes alpacas) especially when you consider that this year also has the 50% bonus depreciation deduction available on NEW asset purchases.

As shared in previous blog entries, this deduction is scheduled to be reduced again in 2011 to $25,000 on purchases not exceeding $200,000. So if you don't make your purchases in 2009 don't miss your opportunity in 2010.

The same publication also includes other deductions and limitations adjusted annually for inflation. Here is the link to the publication:

http://www.irs.gov/pub/irs-drop/rp-09-50.pdf

So start sharpening your pencils and figure out how these deductions can do you the most good while the limitations are at their maximum.

The Alpaca Show Ring Reflected as a High School Memory . . .

2009-09-30T13:44:00.000-07:00

Kellie Overbey of Parson's Prairie Farm in Gladstone, Missouri, appeared in the Oak Park High School 2009 Year Book highlighting her family's alpaca farm. What a great opportunity to expose another generation to the rewarding experiences our industry has to offer.

Great Job, Kellie!

MFI PERUVIAN GLACIAL STORM

2009-09-01T21:13:00.000-07:00

It is with great sadness that we share with you that Glacial Storm was euthanized on August 28, 2009, after being diagnosed with lymphoma. His passing leaves a large hole in our breeding program and his importance to us was not only his genetic make up but his personality as well. He was always a great teacher communicating what it meant to be a herdsire to our male cria.

Employee vs. Independent Contractor – Ten Tips for Business Owners

2009-08-22T17:56:00.000-07:00

Many times when we are looking for help around the farm we run into this nagging problem--is the worker an employee or an independent contractor? Here is a great summary just released by the IRS. If you know this info up front you can structure your working relationship in such a way that you will stay in compliance with the requirements of the IRS.

Released August 21, 2009
If you are a small business owner, whether you hire people as independent contractors or as employees will impact how much taxes you pay and the amount of taxes you withhold from their paychecks. Additionally, it will affect how much additional cost your business must bear, what documents and information they must provide to you, and what tax documents you must give to them. Here are the top ten things every business owner should know about hiring people as independent contractors versus hiring them as employees.

Three characteristics are used by the IRS to determine the relationship between businesses and workers: Behavioral Control, Financial Control, and the Type of Relationship.
Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training or other means.
Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker's job.
The Type of Relationship factor relates to how the workers and the business owner perceive their relationship.
If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
If you can direct or control only the result of the work done -- and not the means and methods of accomplishing the result -- then your workers are probably independent contractors.
Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
Workers can avoid higher tax bills and lost benefits if they know their proper status.
Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8 – Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding – with the IRS.
You can learn more about the critical determination of a worker’s status as an Independent Contractor or Employee at IRS.gov by selecting the Small Business link. Additional resources include IRS Publication 15-A, Employer's Supplemental Tax Guide, Publication 1779, Independent Contractor or Employee, and Publication 1976, Do You Qualify for Relief under Section 530? These publications and Form SS-8 are available on the IRS Web site or by calling the IRS at 800-829-3676 (800-TAX-FORM).

Links:
Contractor vs. Employee
Publication 1779
Publication 15-A

Alpaca Farm Days 2009

2009-08-21T08:33:00.000-07:00

The last weekend in September you will find alpaca farms all over the United States and Canada opening their gates to welcome the public. This annual event is a great opportunity for us to share information about the breed and for you to get a better look at these wonderful animals. Alpacas at Tucker Creek will be open from 10:00 am to 4:00 pm on both Saturday, September 26th and Sunday, September 27th.

During the weekend you will have the opportunity to see the daily activities involved in working with alpacas including cleaning the barn and pastures, feeding, toe nail trimming, shearing and breeding--depending on your time of arrival. There will also be farm tours and fiber spinning demonstrations. We are fortunate to have local fiber artist, Peggy Boisvert, joining us for part of the weekend. Alpaca yarn and finished products are available in our farm store--a great way to start your Christmas shopping.

Please join us as we love sharing these wonderful animals with visitors. Refreshments will be served and there will be drawings throughout the day. The only cost for admission is a nonperishable food item for the Clatsop Community Action Regional Food Bank or the Clatsop County Animal Control Shelter. Look forward to seeing you there. Please follow this link for directions.

Business Start Up Package under $100,000--Cash, Credit Card or Terms

2009-08-07T22:30:00.000-07:00

We have just updated this package to include another junior herdsire and to expand the terms available for purchase to include Cash, Credit Card and terms to be determined by your needs. The entire $98,750 is eligible for Section 179 treatment when you file your 2009 tax return. The cria at side are too young to be considered "placed in service" by 12/31/2009 so they could be valued at zero for 2009 and receive full capital gain treatment upon their sale. 7 of them would qualify for the 50% bonus depreciation deduction as they would be considered "new" at the time of purchase. Review the summary below and consider the tax benefits it could provide as well as the giant step it would represent in your overall herd development.

5 females bred for 2009, 2 come with their 2009 cria at side, 6 females ready for breeding for 2010. Contact us soon and you can select their breedings from the males available on our farm. All (but the female cria) are or will be bred to Studmaster™ herdsires. 9 of them are Studmaster™ progeny. The purchase of each of the males in the package represents a 1/2 interest. You have full possession--we retain 1/2 interest so we can maintain our breeding rights.The purchase entitles you to the full benefits of the Ideal Alpaca Community--the only operational Alpaca EPD program in the country. Your purchase also includes a fully operational website and inclusion in our mentoring program. This price does not include transportation charges. Package includes agistment until all adult females are bred and ready for transport to your farm. And, don't forget, 90 days qualifies as a cash sale.

Price: $98,750

Alpacas included in package: (15 alpacas) (click alpaca name to view details)

Bella - Huacaya, Female, White
Strong, beautiful and second generation Studmaster™. Buy her today and even though she is a 2009 cria she comes with a breeding to any of the herdsires available on our farm when she is ready (not including transport charges). She is also available in a package with her mother, Tucker Creek's Cheyenne....Read More

Cheyenne - Huacaya, Female, Pattern
Beautiful female from elite lines. Cheyenne's fiber has a soft silky handle with 4 to 5 crimps per inch. Her fiber continued to be in the low 20's for the 2008 shearing season. She stands proud and tall and has proven to be an incredible first time mom.Cheyenne comes with a breeding for 2010 and is also...Read More

Clearwater - Huacaya, Female, White
Clearwater is a perfectly white female out of a gorgeous dark brown dam. Her grandsire is El Toro and her sire is Hemingway's Bogart. She is an incredible second generation Studmaster™ female capable of bringing color, density, crimp and great conformation to your herd.An early August breeding to Glacial...Read More

Destiny's Child - Huacaya, Bred Female, Light Brown
Strong, energetic female with half Accoyo pedigree. Her fiber is dense, crimpy and fine. Her blanket is solid . . . the only white is on her head and chin. Her half brother was 2007 Fawn Color Reserve Champion at the California Classic. She can bring the same quality to your herd.She is currently bred ...Read More

Elana - Huacaya, Female, Dark Brown
Elana is a beautiful chocolate brown female. Fantastic coverage with a gorgeous head and a dense fleece. She is a wonderful proven mom having delivered four incredible females to date . . . one dark chocolate and two perfectly white and the fourth a lovely toffee color. Elana has given us four gorgeous fe...Read More

Jewell - Huacaya, Female, Medium Fawn
With the gentle spirit of Eloisa and Sun Tzu and the quality genetics from each of her parents Jewell will be a wonderful addition to your herd. As a second generation Studmaster™ progeny you will find in her the density, crimp and fineness we all seek....Read More

Katrina - Huacaya, Bred Female, Medium Silver Grey
What a beautiful grey female with a sweet disposition. She is an excellent mother. Her fiber is consistent throughout and she has a good handle. She is currently bred to EC Sun Tzu for a estimated July delivery. ...Read More

Loki - Huacaya, Female, Medium Fawn
Loki is a beautiful fawn greatgranddaughter of Peruvian Hemingway. She has a bit of color in her background including grey. She has a nice soft handle with ample staple length. She is scheduled to be bred in late June to Sun Tzu. That is the same breeding that last year produced Tucker Creek's Heath. H...Read More

Milagro - Huacaya, Bred Female, Medium Brown
Another gorgeous female out of Octavia . . . with Glacial Storm as dad. ...Read More

October Fest - Huacaya, Bred Female, Medium Rose Grey
October Fest is stunning with soft handling fleece. Interesting mahogany/coffee roan gray with beautiful profile. October Fest is currently being sold along with 1/2 interest in her 2008 male cria, Tucker Creek's Rocky Road. This includes full possession of the male cria. At his current age it is too soon...Read More

Tiffany - Huacaya, Female, Dark Silver Grey
Tiffany is a flashy dark grey female with light grey polka-dots. Her fleece is a rich color with high frequency crimp, super nice handle and the brightness you'd expect coming from two suri parents. Check out her histogram . . . pretty good, especially for grey!Tiffany delivered a beautiful male cria out o...Read More

Victoria - Huacaya, Bred Female, Medium Brown
An incredible Hemingway granddaughter. Victoria is a beautiful girl from Award Winning Studmaster™, Hemingway's Tequila. She is a wonderful mother. Her 2007 cria, Tucker Creek's Revival, is currently available as a young herdsire. Each year we select the male cria we feel have the most potential and Revival made...Read More

Revival - Huacaya, Male, Medium Brown
Another excellent example of the success of the Studmaster program. Revival is a second generation Studmaster progeny. His dam is out of MSA Hemingway's Tequila and his sire is EC Sun Tzu. He already is exhibiting many of the personality traits of Sun Tzu along with the density and crimp you would expect from h...Read More

Revolution - Huacaya, Male, White
Revolution has all the characteristics you hope for in a male--square conformation; low micron count; good staple length and a great attitude. He is strong and has the ability to bring rose grey into your herd along with the Accoyo attributes of his sire, Pacific Crest Accoyo Paul Revere.The photo of his ...Read More

Rocky Road - Huacaya, Male, Medium Fawn
Another gorgeous Sun Tzu male--vigorous and curious.1/2 interest in Rocky Road is currently included in a package with his dam for the current list price of the dam. This includes full possession of the male cria. At his current age it is too soon to tell if he will have a future as a herdsire. This is a g...Read More

Fuego - Huacaya, Male, Dark Rose Grey
And last but not least, we have just added Tucker Creek Fuego. As with all the males, only 1/2 interest transfers--but he will be on your farm full time. He is a gorgeous dark rose grey with more grey showing up all the time.

Annual "Buy One Alpaca and Get the Second for 1/2 Price" Sale

2009-08-04T23:16:00.000-07:00

Annual "Buy One Alpaca and Get the Second for 1/2 Price" Sale

The American Recovery and Reinvestment Act extended the 50% Bonus Depreciation & increased Section 179 deduction ($250,000 maximum) through 2009 making this year the best year to begin or expand your herd.

Pick out your favorite alpaca and match it up with another of an equal or lesser value.

Match up as many combos as you like.

Cash, credit cards and terms.

Additional 5% discount for cash transactions (90 days is the same as cash).

No interest if paid off within one year.

Free transportation within Continental US.

The American Recovery and Reinvestment Act of 2009

2009-08-04T23:00:00.000-07:00

August is here; soon school will be back in session and before we know it the holidays will be upon us. This is just a reminder that during 2009 many new tax provisions were introduced. Follow this link to the IRS published summary of the provisions of the American Recovery and Reinvestment Act of 2009.

The ones which tend to have the greatest impact on us relate to net operating losses and depreciation related deductions. The new law allows any small business the opportunity to carry a net operating loss back for five years as opposed to the prior law of two years. Farming operations were already allowed a five year carryback--this is just a reminder to not forget this provision when you are considering your alternatives.

The tax planning opportunity here is that depending on your particicular situation any of the following could be to your benefit:

to take bonus depreciation in order to create a net operating loss which could be carried back;
to take a current year Section 179 and bonus depreciation deductions which could be carried forward to a year when you anticipate sufficient income;
any combination of the above which maximizes your tax benefits.

When you consider the limitations on this year's deductions you can easily see the impact they could have on your potential tax liability. The bonus depreciation is only available on NEW assets with a life of 20 years or less. It can be used this year to offset current year revenue; can be carried back five years to offset prior income or can be carried forward to future years. There is no limit on the amount of property which can qualify for this deduction. Section 179 is available on new or used property, is limited to $250,000; is reduced dollar for dollar if your eligible purchases exceed $800,000; can be used currently or can be carried forward--but is NOT eligible for carry back.

So start now to plan for your 2009 taxes. Consider the impact of buying new or used equipment or alpacas while the deductions are still available. Section 179 is scheduled to continue but next year it will be reduced to an amount probably in the range of $135,000 to $140,000 as it will be based on $125,000 adjusted for inflation from 2007. It is scheduled to be reduced to $25,000 in 2011. Currently there is no provision for the bonus depreciation deduction to continue beyond 2009. So you can see where these provisions alone make 2009 a great tax planning year.

Am I Behind on Cria News?????

2009-07-26T11:58:00.000-07:00

The summer is just racing by. Can't believe we are already on cria number eight and I have only reported on two. Well here goes the update:

River Rock's Tiffany delivered a medium fawn Sun Tzu male on June 11th. Had some wonderful suggestions on his name but Korynn and David won't allow any changes. His name is Tucker Creek's Bungee Buuud. Very soft and crimpy.

On June 14th two more Sun Tzu progeny appeared in our pasture from Tequila's Marcella, owned by Oregon Coast Alpacas and RGA Cordelia owned by Jim Supple of Cool, CA. Marcella had a beautiful dark brown female named Tucker Creek's Collie. And Cordelia had a very busy medium fawn male by the name of Tucker Creek's Cordelia's Cordial--Cord by his friends.

Two days later Queen Amidala, AOO, delivered a gorgeous rose grey Sun Tzu male named Tucker Creek's Sun Tzu Warrior. Very strong weighing in over 20 pounds. Beautiful fiber. He pretty much rules the cria pasture--just like his mother--always in

control.

All of the crias to this date were shorn on shearing day so we had a wonderful opportunity to check out their fiber. Sun Tzu has done well--as usual. If you would like to see samples, just email or call Peggy.

One week after shearing on July 7th Queen Amidala's opinionated daughter, Tucker Creek's Jasmine, gave birth to yet another Sun Tzu baby boy. A very dark energetic character by the name of Tucker Creek's Oscuro (dark in Spanish). You may call him Oscar if you prefer.

And the most recent addition born on July 23rd is Tucker Creek's Sun Fuego out of C oa stal Moon's Katrina and Sun Tzu. A handsome dark rose grey male. Just love all the rose grey babies this year.

Don't look at the male to female ratio (two out of eight) as I am convinced it will turn around here any day. THINK PINK!!!

Alpaca Client Does Commercial with Subway

2009-07-01T20:27:00.000-07:00

There is really nothing more to say . . . the commercial says it all. This couple is awesome and it was so fun to see them in this commercial. Our path in life may take many twists and turns . . . it is fun to see how the friends we make along the way got from point A to B. Jeffrie Sue Carver and Clinton Brooks own C & J Alpaca Ranch in Fort Collins, CO.

http://fittoboom.msnbc.msn.com/?source=permalink#/home/video/9/0

Enjoy!

What Does a Herd Dispersal Sale Mean to YOU?

2009-06-18T18:49:00.000-07:00

This topic was created out of a question asked by a new breeder in the midst of creating his business plan. To be perfectly frank, I hadn't given it a great deal of thought until he posed the question. AATC currently has room for more alpacas but buying alpacas doesn't fit in our current business model. We are currently fortunate to be agisting 35 alpacas for our clients, are planning on 17 more cria (about half of those for clients) for the 2009 birthing season, have 17 members of our foundation herd and 23 alpacas for sale.

So, I sincerely had to give it some thought. Bottom line there is no simple answer. Dispersal sales are designed to sell off an entire farming operation or group of livestock in an expeditious manner generally brought about by an event such as retirement, health issues, death of an owner, financial necessity, market fluctuations--the list can be endless. Whether it is a good opportunity for the buyer remains to be seen. Nothing can take the place of your own due diligence. A great deal is no deal at all if you have registry problems; if the herd has health issues; if you can't get them bred--and there is no one left at the farm to honor the contract. The dispersal sales you see on-line and in your mail box are an opportunity and a risk. You are the only one who can define what level of risk you are capable of withstanding. As with any purchase of breeding livestock you must make sure the animal is registered, that the seller you are buying from has a right to sell the animal, and that the breeding animals come with live birth and reproductive guarantees. If there is a guarantee will the seller be in a position to honor that guarantee after they retire from the business?

Do not get me wrong--there are many reputable alpaca breeders out there selling their herds--and you can be comfortable in buying from them. But be sure to do your due diligence. Being a retired CPA, I like a good deal. But a good deal could be the purchase you make from a breeder who is not going out of business; who may be charging a bit more than the dispersal farm; but will still be in business after you have taken the animals home. That is a decision only you can make.

Special Tax Break on New Car Purchases Available in States With No Sales Tax

2009-06-10T13:32:00.000-07:00

Just released today from the IRS--this deduction is available for any and all taxpayers--you are not required to own a business to qualify--it is an itemized deduction:

WASHINGTON —The Internal Revenue Service and Treasury Department today announced that a tax break for the purchase of new motor vehicles is available in states that do not have a state sales tax. Under the American Recovery and Reinvestment Act of 2009, taxpayers who buy a new motor vehicle this year are entitled to deduct state or local sales or excise taxes paid on the purchase.

The IRS and Treasury have determined that purchases made in states without a sales tax – such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon – can also qualify for the deduction.

The IRS said today that taxpayers who purchase a new motor vehicle in states that do not have state sales taxes are entitled to deduct other fees or taxes imposed by the state or local government. The fees or taxes that qualify must be assessed on the purchase of the vehicle and must be based on the vehicle’s sales price or as a per unit fee. According to the IRS, Congress intended for these fees or taxes to qualify for this special tax deduction.

“This special tax break is available for people purchasing a new car this year, and that can include people in states without a sales tax,” said IRS Commissioner Doug Shulman. “This means that more people can take advantage of this deduction when they file their tax returns next year.”

To qualify for this deduction, the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010. Taxpayers can claim this special deduction only on their 2009 tax returns to be filed next year.

The deduction is limited to the fees or taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle.

The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.

The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers who do not itemize will add this additional amount to the standard deduction on their 2009 tax return. The IRS reminded taxpayers the deduction may not be taken on 2008 returns.

Just 5 Minutes Apart

2009-06-09T21:53:00.000-07:00

Saturday afternoon we were watching the Belmont Stakes on television and just about the time all the excitement at Belmont Park was dying down the excitement in our pasture was just beginning. Tucker Creek's Cheyenne was in mid-delivery with two legs and a head hanging out. We raced down to the pasture and identified that all was going smoothly when we realized that Cheyenne was not the only mom ready to bring a new cria into the world--IAOC Iomi was just a few minutes behind Cheyenne--but she had only one leg and a head showing. With just a quick search for the other leg all was in perfect position for the next arrival.

So at 4:00 Cheyenne presented us with a beautiful white female cria we named Tucker Creek's Bella (in honor of the Belmont). She weighed in at 19.0 pounds and is busy healthy girl.

At 4:05 Iomi presented us with a handsome medium fawn male cria we named Tucker Creek's Belmont Runner (in honor of the Belmont and, yes, because he is quite the runner). He weighed in at 15.2 pounds and is still running.

Both of these gorgeous cria were sired by our handsome Studmaster™ EC Sun Tzu.

Bella and Cheyenne are our featured package for the combined price of $16,750. First and second generation Studmaster™ females including a breeding for each of them.

Three more ladies are due any time--two of them are ours--Queen Amidala, AOO and River Rock's Tiffany, the third belongs to one of our clients. Will keep you posted as they arrive.

Seminar & Shearing Weekend Update

2009-06-02T11:20:00.000-07:00

The last weekend of June is shearing weekend at Alpacas at Tucker Creek. It will start out with a seminar presented by Carrie Hull from Coarse Broads entitled "A Good Yarn--Essential Yarn Basics That Every Alpaca Breeder Should Know" on Saturday, June 27th starting at 9:30 am. Click on the title to get more details on the seminar. A continental breakfast (being served at 8:30 am and lunch (being served immediately following the seminar) are included with your seminar registration. Serendipity Caffe of Warrenton will be catering our weekend again this year. Please let us know if you have any special dietary requirements. The cost of the seminar is $50 per person paid via check or credit card. Click here to register. As always, seminars are free to client farms.

Following the seminar from 2:00 pm to 5:00 pm will be an "Open Barn" for seminar participants, family and friends only. (The public will be welcome to attend the shearing activities on Sunday and Monday.) This will be a great opportunity for you to see Carrie in action as she sorts fiber from area alpaca farms being brought to Tucker Creek for her expertise. Also available will be spinning and other fiber demonstrations along with tours of the barns and pastures and a great chance to check out the new cria.

Then shearing begins on Sunday afternoon, June 28th. Armando Victoria and his crew are scheduled to be here mid-day as they will be shearing for Pat and Rhonda Green at Alpacas at Bear Creek in the morning.

Carrie Hull will be our resident certified sorter again this year. Several of the individuals who attended her seminar last year have started the two year apprenticeship program and will be sorting beside her.

If you wish to help on either day please contact us no later than Friday, June 26th, so we can finalize our duty roster in advance of the event. Shearing on Sunday will begin at 1:00 pm (or whenever Armando arrives). Shearing on Monday will begin at 8:00 am and will be over whenever Armando is. Note the overriding theme here--it all begins and ends with Armando Victoria.

If you wish to watch the event but not get dirty (and we do tend to get dirty) the cost of admission is a nonperishable food item for the Clatsop Community Action Regional Food Bank or the Clatsop County Animal Control Shelter.

Look forward to seeing you there. It is a lot of work but it is our harvest and it is the culmination of all our year long efforts. And from the alpacas' point of view--they are just thrilled to get rid of all that fiber. Even little ones get shorn--here is a shot of Candy and her mom, Queen Amidala, after her tips were shorn at six days of age--you should come back this year just to see what she looks like now.

It is absolutely gorgeous on the Oregon Coast this time of year. Why not make it a nice long weekend--check out some of the hotels listed below and the link to the Chamber website to participate in some of the other wonderful activities available in our little part of the world.

Cannery Pier Hotel - right on the Columbia River, incredible views, day spa available by reservation. Be sure to ask for Ally Stevens when you check availability. ally@cannerypierhotel.com - email

Hotel Elliott - in the center of downtown Astoria--recently restored, beautifully historic.

Holiday Inn Express - also located right on the Columbia River-a little less expensive but still breathtaking views.

Check out the website of the Astoria Warrenton Area Chamber of Commerce for a more detailed list of hotels and other activities happening on the coast.

If you are coming in via Portland International Airport, you will be happy to know there is now an air shuttle service available. It is called Seaport Airlines and their service cuts a two hour drive down to a 25 minute flight. To further simplify your weekend planning there is a Hertz Car Rental office at Astoria Regional Airport. Click here for directions to Alpacas at Tucker Creek.

If you have any questions, please feel free to contact us--we would love to visit with you. Hope you are enjoying the wonderful spring weather and will be able to join us for the seminar, or shearing or both. Enjoy!

All Any of Us Really Have to Sell is Our Integrity

2009-05-27T20:50:00.000-07:00

Whether selling widgets, services or alpacas, in today's economy more than ever, all any of us really have to sell is our integrity. Will the product or service stand up to the expectations of the buyer and will the seller be ready to support that purchase long after the ink has dried. You already know we are in business to sell alpacas--but we want you to be a client not just once, but for years to come. And to that end, here are our terms.

All females sold include one year's free agistment.
All inclusive agistment fee includes routine husbandry issues such as nail trimming and shearing as well as customary veterinary care (only care requiring a trip to the veterinary clinic or the veterinary hospital will be your responsibility).
Lifetime live birth guarantee to the owner of the dam at the time of delivery. Should the cria ever die while owned by the owner at the time of delivery AATC will provide a free breeding to the dam. Transportation costs not included.
Small farm feel—large farm experience. In operation since 2003. To date we have had 108 cria at Alpacas at Tucker Creek.
Ideal Alpaca Community member—purchase of any of our animals will allow your entire herd the benefits membership allows.
Studmaster™breedings—reduced fees for drivebys and repeat customers.
All adult females are sold bred along with a breeding for the following year.
Discounts for multiple purchases and repeat buyers.
Flexible payment programs including package and or cash discounts; payments via cash, check, credit card or Paypal with terms to meet your individual needs. Current rates as low as 4%.
Halter and lead ropes with each purchase.
Assistance with farm planning--from business plans, to farm layout to breeding selections to marketing. And, all seminar registration fees are waived for clients of AATC.
Your purchase of a female alpaca also includes free transportation (not to exceed $500).

We look forward to working with you whether you attend one of our seminars, come by for a farm visit, decide to purchase some of our beautiful alpacas or just want to bounce some ideas off of us.

Breeding Decisions - Use ALL the Tools Available to You

2009-05-15T11:35:00.001-07:00

Our alpacas are beautiful animals and they are very calming to the spirit--but in the final analysis of our individual business plans if we are not trying to develop a business with a profit motive involving more than the sale of the alpacas themselves then what are we really offering. Developing an alpaca with low micron, high density, bundled fiber which remains consistent throughout the fleece with excellent conformation should be our goal. As we see it consistency is almost more important than the micron count as it facilitates the ease of processing the fiber. All classes of fiber can be used for a variety of purposes but if we aim for consistency it will help to minimize the overall costs of processing.

As we make our breeding decisions each year we need to be sure to use all of the tools currently available--such as fiber sorting records, EPD (estimated progeny differences) and histograms. And, of course, prior breeding history is a resource that costs us nothing--incrementally--as those costs are in the past. Each breeding decision is critical to the success and growth of our respective farms.

Those of you who are regular readers know how committed our farm is to the philosophy and benefits of using the Certified Sorted™ method. Because of that commitment we will start posting the newsletters we receive from Coarse Broads on this blog. Their newsletters are a wealth of information helping us to understand the process and the path to developing our herds into a sustainable business--and isn't that what we are all trying to accomplish. Here is the link for Coarse Broad's April Newsletter as well as the archive of prior newsletters. Note the subscribe button toward the top of the page.

If you have purchased animals from us or any other farms affiliated with the Ideal Alpaca Community then you have the benefit of being connected with the only active Alpaca EPD program in the country. Follow this link to learn about the IAC--and membership is currently free. One of the great benefits of membership is that it helps you coordinate and manage your shear list. Once your herd information is entered, selecting the sequence of shearing your animals is simple and the system is also designed to print all the transmittal forms required for submission of fiber samples. As the size of your herd grows these tools become more and more valuable--especially when you have histograms processed for all the alpacas in your herd.

Bottom line--look at the tools available to you. Does the cost out weigh the value provided. Fiber sorting is $15 per animal; histograms for the IAC $9.50 per sample--the benefits of using this information--priceless. They are the ultimate tools for making your breeding decisions.

Snow River Alpacas Annual Shearing

2009-05-15T11:08:00.000-07:00

Tomorrow Peggy is traveling to Colfax, CA to help Snowy River Alpacas with their annual shearing day. Robyn Kuhl from Coarse Broads will be there to sort the fiber.

And don't forget on Saturday, June 27th Carrie Hull from Coarse Broads will be presenting the seminar "A Good Yarn" at our farm in Astoria, OR. The cost is $50. As with all seminars presented at our farm, the cost is waived for clients of Alpacas at Tucker Creek. A continental breakfast will be served at 8:30 am with the seminar scheduled for 9:00 am. We will be shearing the following two days. If you would like to help please contact us on or before Friday, June 26th so we can include you in our duty roster (our email and phone numbers are in the box to the right). If you wish to watch the event but not get dirty (and we do tend to get dirty) the cost of admission is a nonperishable food item for the Clatsop Community Action Regional Food Bank or the Clatsop County Animal Control Shelter.

If you are near Snowy River Alpacas this weekend through Tuesday and would like to learn more about the Certified Sorted™ method please contact Hailey at 530-346-6885 so she and Robyn can be expecting you.

Willamette Alpaca Breeders Association

2009-05-12T20:22:00.000-07:00

The Willamette Alpaca Breeders Association invited me to join them for their meeting on February 12th to discuss the current tax laws and the impact the economy has on the alpaca industry. As part of that invitation, Maren Anderson from Evergreen Terrace Farms interviewed me for their on-line series Paca Talk. The link to that interview is below.

http://www.pacatalk.com/2009/02/paca-talk-6-peggy-stevens-interview/

Between traveling and getting sick, this is the first chance I have had to share this interview with you. We would also like to thank Maren and WABA for their kind invitation.

Smile & Move

2009-03-17T08:13:00.000-07:00

After several posts related to taxes here is something to truly smile about. smile&move is a call to positive action . . . to be happy and do something . . . a reminder of how we should approach our work (whether that work is done in the office, on the field, in the classroom or at home.)

And Happy St. Patrick's Day--after all Peggy is 1/8th Irish.

More News from the IRS

2009-03-16T18:34:00.000-07:00

The IRS has sent two more email blasts which contain items that are on point as all of us are feverishly trying to complete our 2008 tax returns. If you want to get a head start on preparing 2009 tax returns join us on April 13th at Northwest Alpacas for our Alpaca Taxes and Business Plan Seminar.

Issue Number: TT-2009-51

Inside This Issue

Seven Important Points about Penalties

Taxpayers who do not file their return and pay their tax by the due date may have to pay a penalty. Here are seven things you should know about failure-to-file and failure-to-pay penalties.

The failure-to-file penalty is generally more than the failure-to-pay penalty. So if you cannot pay all the taxes you owe, you should still file your tax return and explore other payment options in the meantime.
The penalty for filing late is usually 5 percent of the unpaid taxes for each month of part of a month that a return is late. This penalty will not exceed 25 percent of the taxpayer’s unpaid taxes.
If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
You will not have to pay a failure-to-file penalty if you can show that you failed to file on time because of reasonable cause and not because of willful neglect.
You will have to pay a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid.
If you filed an extension and you paid at least 90 percent of your actual tax liability by the due date, you will not be faced with a failure-to-pay penalty.
If both the failure-to-file penalty and the failure-to-pay penalty apply in any month, the 5 percent failure-to-file penalty is reduced by the failure-to-pay penalty. However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax.

Link: Avoiding Penalties and the Tax Gap

Is it Too Good To Be True? Home-Based Business Tax Avoidance Schemes

NOTE: This headliner is current through the publication date. Since changes may have occurred, no guarantees are made concerning the technical accuracy after the publication date.

Headliner Volume 263-March 1, 2009

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. The home office deduction is available for homeowners and renters, and applies to all types of homes, from apartments to mobile homes.However, the Internet may provide a new medium for promoters to sponsor illegal tax avoidance schemes. Many of these schemes involve the use of fictitious online businesses including online retail and services, online auction sales, and bartering. Some of these tax avoidance schemes suggest the conversion of a hobby or recreational activity into a “business” in order to claim personal expenses improperly as business expenses.

Taxpayers should regard as highly suspect any investment scheme or promotion that claims to allow a person to deduct what would normally be personal expenses and not ordinary and necessary business expenses. As always, a business must truly exist prior to claiming any business expenses. Read on . . .

New Law Extends Net Operating Loss Carryback for Small Businesses

2009-03-16T15:05:00.000-07:00

This was released by the IRS today--one note for those of us who farm for a living--the tax code already allows for a five year carry back on farm related losses--this will allow any non-farm losses to also be carried back five years.

IRS To Ensure Refunds Paid Timely

Washington – The Internal Revenue Service announced today that small businesses with deductions exceeding their income in 2008 can use a new net operating loss tax provision to get a refund of taxes paid in prior years.

To accommodate the change in tax law, the IRS today updated the instructions for two key forms – Forms 1045 and 1139 -- that small businesses can use to make use of the special carryback provision for tax year 2008. These forms are used to accelerate the payment of refunds.

The new provision, enacted as part of the American Recovery and Reinvestment Act of 2009, enables small businesses with a net operating loss (NOL) in 2008 to elect to offset this loss against income earned in up to five prior years. Typically, an NOL can be carried back for only two years. The IRS released legal guidance today in Revenue Procedure 2009-19 outlining specific details. Some taxpayers must make the election to use this special carryback by April 17, 2009.

“The new net operating loss provisions could throw a lifeline to struggling businesses, providing them with a quick infusion of cash,” said IRS Commissioner Doug Shulman. “We want to make it as easy as possible for small businesses to take advantage of these key tax benefits.”

With the economic downturn and the new law, the IRS expects record numbers of small businesses to be eligible for the refunds. The IRS is putting in special steps to ensure timely processing of these refunds to help small businesses during this difficult period.

Small businesses with large losses in 2008 may be able to benefit fully from those losses now, rather than waiting until claiming them on future tax returns.

The normal two-year carryback remains available if the small business does not elect the special carryback provision. If the loss exceeds the income for the carryback period, the taxpayer can continue to carry forward the remaining balance of the NOL for up to 20 years.

For small businesses that use a fiscal year, this special carryback may be used for an NOL in either a tax year that ends in 2008 or a tax year that begins in 2008. Once a taxpayer makes this election, it may not be changed.

To qualify for the new five-year carryback provision, a small business must have no greater than an average of $15 million in gross receipts over a three-year period ending with the tax year of the NOL. Businesses with more than $15 million in gross receipts still qualify to carry back their 2008 NOL for two years.

There are several methods that a small business uses to elect the new provision as detailed in the Revenue Procedure.

If a small business previously elected to waive the carryback of 2008 NOL but now wants to elect this special carryback, the small business may revoke its previous election to waive the carryback. The election revocation must be made on or before April 17, 2009.

Generally small businesses that are not corporations (including sole proprietorships filing schedule C with their Form 1040) may accelerate a refund by using Form 1045, Application for Tentative Refund.

Corporations with NOLs may also accelerate a refund by using Form 1139, Corporation Application for Tentative Refund.

The IRS will be closely monitoring these filings and will provide additional staff as needed to process these forms. The IRS will work to issue refunds within 45 days or even earlier to the degree possible.

In addition, Frequently Asked Questions have been posted on the IRS.gov web site. Small businesses that file Form 1040 can also call 1-800-829-1040 with NOL questions. Corporations can contact 1-800-829-4933 with NOL questions.

Form 1045 or Form 1139, whichever the taxpayer uses, generally must be filed within one year after the end of the tax year of the NOL. In addition, the current year’s tax return must be filed by the date the Form 1045 or Form 1139 is filed. Form 1045 and Form 1139 are filed at the same place the taxpayer’s return is filed, as listed on the return instructions.

Accelerated refunds paid via Form 1045 or Form 1139 is described as “tentative” because the applications for refunds are potentially subject to review at a later date. Form 1045 Instructions and Form 1139 Instructions on http://www.irs.gov/ provide more information on the accelerated refund option.

Related Items:
Revenue Procedure 2009-19
Questions and Answers for ARRA - Section 1211 5-year Net Operating Loss Carryback Election for Small Businesses
Publication 536-Net Operating Losses for Individuals, Estates and Trusts

Five Tips to Avoid Tax Time Stress

2009-03-13T08:58:00.000-07:00

Monday is the filing deadline for corporate returns--since the 15th falls on a weekend the deadline is moved to Monday, March 16th. For partnerships and individuals the deadline will be Wednesday, April 15th--no reprieves for the rest of us. So just in time to ease our tax frustration our friends at the IRS released the Tax Tips shown below.

Are you looking for ways to avoid the last-minute rush for doing your taxes? Here are some stress-relieving tips to help you.

1. Don’t Procrastinate – Resist the temptation to put off your taxes until the very last minute. Your haste to meet the filing deadline may cause you to overlook potential sources of tax savings and will likely increase your risk of making an error.

2. Visit the IRS Online – In 2008, there were more than 330 million visits to IRS.gov. Anyone with Internet access can find tax law information and answers to frequently asked tax questions.

3. File Your Return Electronically – Nearly 90 million taxpayers filed their returns electronically in 2008. Aside from ease of filing, IRS e-file is the fastest and most accurate way to file a tax return. If you’re due a refund, the waiting time for e-filers is half that of paper filers.

4. Don’t Panic if You Can’t Pay – If you cannot pay the full amount of taxes you owe by the April deadline, you should still file your return by the deadline and pay as much as you can to avoid penalties and interest. You also should contact the IRS to discuss your payment options at 1-800-829-1040. The agency may be able to provide some relief such as a short-term extension to pay, an installment agreement or an offer in compromise. More than 75 percent of taxpayers eligible for an Installment Agreement can apply using the Web-based Online Payment Agreement application available on IRS.gov. To find out more about this simple and convenient process type “Online Payment Agreement” in the search box on the IRS.gov homepage.

5. Request an Extension of Time to File – But Pay on Time If the clock runs out, you can get an automatic six month extension of time to file to October 15. However, this extension of time to file does not give you more time to pay any taxes due. You will owe interest on any amount not paid by the April deadline, plus a late payment penalty if you have not paid at least 90 percent of your total tax by that date. See IRS Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return for a variety of easy ways to apply for an extension. Form 4868 is available at IRS.gov or by calling 800-TAX-FORM (800-829-3676). Taxpayers needing Form 4868 should act soon to be sure they have the item in time to meet the April deadline.

Links:

Official Payments Corporation
Link2Gov Corporation
Electronic filing
Free File
Electronic payment options
Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return (PDF)
Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns

Above courtesy of IRS Tax Tips Issue Number: TT-2009-50

Fiber Sorting Events Calendar

2009-03-08T10:25:00.000-07:00

March 28-29, 2009 Seminar/Sort
Saturday - "Fiber Sorting for Maximum Profit" - Presented by Carrie Hull
Sunday - hands on assistance with sorting during shearing
Little Blessings Fiber Farm
79809 Stewart Creek Road
Clatskanie, OR 97016
Contact LaVeta Roberts
Phone: 503-701-1167
littleblessingsalpacas@gmail.com
www.littleblessingsalpacas.com/calendar.htm

April 3 thru 5, 2009
Fiber Symposium at Gaston College Textile Center in Belmont, NC.
Presentation of North American Alpaca Fiber Producers
Presenter: Robyn Kuhl
www.alpacafibersymposium.com/index.html

May 18, 2009
Sorting at Snowy River Alpacas
Colfax, CA
Certified Sorter: Robyn Kuhl
Contact Hailey Parker if you are interested in assisting with shearing.
Phone: 530-346-6885
snowyriver1@earthlink.net
www.snowyriveralpacas.com

June 27, 2009
Seminar: A Good Yarn
Certified Sorter: Carrie Hull
Registration: $50 per person includes course materials, snacks and lunch
Alpacas at Tucker Creek
36281 Tucker Creek Lane
Astoria, OR 97103
Contact Peggy Stevens
Click here for more details
Phone: 877-915-0522 Toll Free
peggy@alpacadigest.com
www.alpacadigest.com

June 28 and 29, 2009
Shearing
Certified Sorter: Carrie Hull
Alpacas at Tucker Creek
36281 Tucker Creek Lane
Astoria, OR 97103
Contact Peggy Stevens
If you are interesting in assisting with shearing please contact us by Friday, June 26th
If you are interesting in watching admission is a non-perishable food item for either the Clatsop County Food Bank or the Clatsop County Animal Control Shelter.
Click here for more details
Phone: 877-915-0522 Toll Free
peggy@alpacadigest.com
www.alpacadigest.com

To learn more about fibersorting and the Certified Sorted method check out these websites www.naafp.us and www.fibersorting.com. As we learn of other events we will post them here.

Annual Shearing Days

2009-03-07T19:44:00.000-08:00

Alpacas at Tucker Creek will be shearing on Sunday, June 28th and Monday, June 29th. If that seems a little late in the year to be shearing, check with anyone who was at the farm last year. They will share that Mother Nature did not care what the date was when she scheduled the weather for our very important weekend--it was very reminiscent of winter. So, the executive decision was made to shear later--don't know how much later we can go if this weekend doesn't work out but we are going to try the end of June.

Our annual fiber seminar will be held on Saturday, June 27th--see previous post for details.

Carrie Hull will be our resident certified sorter again this year. Several of the individuals who attended her seminar last year have started the two year apprenticeship program and will be joining her this year.

If you wish to help on either day please contact us no later than Friday, June 26th, so we can finalize our duty roster in advance of the event. Shearing on Sunday will begin at 1:00 pm (or whenever Armando arrives). Shearing on Monday will begin at 8:00 am and will be over whenever Armando is. Note the overriding theme here--it all begins and ends with Armando Victoria.

If you wish to watch the event but not get dirty (and we do tend to get dirty) the cost of admission is a nonperishable food item for the Clatsop Community Action Regional Food Bank or the Clatsop County Animal Control Shelter.

Look forward to seeing you there. It is a lot of work but it is our harvest and it is the culmination of all our year long efforts. And from the alpacas' point of view--they are just thrilled to get rid of all that fiber. Even little ones get shorn--here is a shot of Candy and her mom, Queen Amidala, after her tips were shorn at six days of age--you should come back this year just to see what she looks like now. Absolutely gorgeous!

A Good Yarn

2009-03-07T18:12:00.000-08:00

Yarn is the base of all textiles. As a breeder of fiber producing animals, alpaca breeders need to understand how what you do affects this basic building block.

A Good Yarn walks you through how yarns are constructed, why they are constructed the way they are and the affect fiber health and fiber condition has on the yarns produced.

This three hour seminar will be presented by Carrie Hull from Coarse Broads at Alpacas at Tucker Creek in Astoria, OR on Saturday, June 27th as part of our three day shearing event. The cost of the seminar is $50 which includes course materials, continental breakfast and lunch. The cost of the course is included in the mentoring package for any clients of Alpacas at Tucker Creek.

As many of you may recall, 2008 was our first year to include fiber sorting in our shearing process. To say it was a success would be an understatement. In the big scope of things this service is worth so much more than the charge per fleece. Just knowing that by the end of shearing day all of the fiber is ready to go with recommendations for its highest and best use along with details we can use for future breeding decisions--makes us wish we had known about this years ago.

Another sorting event will find Peggy helping Hailey Parker at Snowy River Alpacas on May 18th in Colfax, CA, where Robyn Kuhl will be sorting her fiber. Find an event near you (be it a seminar or shearing event) and see what a huge benefit fiber sorting provides for your farm. A list of events is being compiled and will be posted soon. To learn more about the Certifed Sorted process go to www.naafp.us.

A Llama shares a Starburst

2009-03-07T17:02:00.000-08:00

Starburst has a commercial including a llama. Not an alpaca--but still really cute. Sun Tzu would probably do this in a heart beat--but don't think it is a good idea to create such bad behavior in our star herdsire. He is bad enough with carrots.

Just thought you would all enjoy seeing this.

Tax Planning and Business Plans @ Northwest Alpacas

2009-03-03T10:16:00.000-08:00

Alpaca Business and Tax Planning

Create Your Own Personal Business and Tax Plan

Instructors: Fred Kraft , Peggy Stevens

Date: Friday, March 20, 2009 Rescheduled for Monday, April 13, 2009

Course Description: Ideally, people who are considering purchasing their first alpacas will take this class before they spend their money. Most successful businesses start with a plan and we will help you create one for the alpaca business. The instructors have many years of experience as successful, profitable alpaca ranchers. (Includes a 10 year personalized business plan.) Click here to enroll.

Fred and Peggy generally present this seminar a couple of times each year. If you are thinking about buying your first alpacas this is a wonderful next step as you plan your operation. If you have been in the business and maybe are not accomplishing what you had hoped come to get a new focus on your business.

Look forward to seeing you there.

The Ohio State University Camelid Neonatal Conference

2009-02-25T21:46:00.001-08:00

If you have never attended a neonatal seminar now is the time to attend this one. For those of you who have participated before you might be like me and want to go to one every year. They are incredibly informative and repeat attendance is very reinforcing.

Date & Time:

4/25/2009 8:00 AM

Location:

The Ohio State University

College of Veterinary Medicine

601 Vernon Tharp Street

Columbus, OH 43210

Contact: Office of Veterinary Continuing Education: (614) 292-8727

Course is intended for camelid owners and breeders. This course focuses on the pregnant female camelid and their care. Discussion will include the needs of the pregnant female as they get close to the birthing process. The birthing process (normal) and common problems observed during the later part of pregnancy, during the birthing process and for the first months of the crias life will also be covered along with the care and management of the newborn and its dam, as well as management factors which play a role in raising healthy camelids.

This is my alma mater--so go and enjoy the beauty of one great old university.

GO BUCKS!

As soon as the Veterinary Teaching Hospital at Oregon State University schedules their neonatal seminar the announcement will be posted here. Check back often so you don't miss out.

3rd Annual Alpaca Woods Ranch Open House

2009-02-25T20:15:00.000-08:00

Mark March 28th on your calendars as the 3rd Annual Open House at Alpaca Woods Ranch.

This event is our chance to share these wonderful animals with those of you who have been pondering your interest in this growing industry as well as those of you who have stopped by before. Plenty of changes have occurred in the last year—we have added more pastures, new shelters and, of course, the best part—new crias. Refreshments will be served. There is no charge but we would appreciate an RSVP just for planning purposes.

Again this year, Peggy Stevens from Alpacas at Tucker Creek (http://www.alpacadigest.com/) in Astoria, OR will be our featured speaker addressing the tax consequences of alpaca ownership. Peggy is a retired CPA with many years of small business experience. She and her husband, Dave, have been raising alpacas since 2003. She will be discussing the great opportunities this industry has to offer as well as some of the pitfalls to avoid. Time will also be allotted for your personal alpaca tax questions. Among her topics will be the criteria applied by the IRS to classify an operation as a business instead of a hobby; how to leverage the purchase price of alpacas by using funds which might otherwise pay current taxes; the importance of a business plan and other topics of interest at a time when tax code revision is again under serious consideration. She has been a featured speaker at the 2008 Alpaca Owners and Breeders Association National Conference; the Alpaca Institute at Northwest Alpacas as well as regional affiliate meetings.

The Open House will be from Noon to 5:00 p.m. The tax presentation will be held from 1:00 – 3:00 p.m. Please advise if you will be able to join us on March 28th by phoning Ronnie at (770) 972-1247 when we will also provide you with driving directions.

Year End 2008

2008-12-28T11:16:00.000-08:00

Wow—how I hate this cliché—but it is so true! Where has the time gone? 2008 has been a wild year. The alpaca industry continues to provide us with a very good living despite the issues with the economy. Prices may be a tad softer than a year ago but they are holding strong and continue to prove that the industry is and will remain viable.

For those of you who have been to our farm--here is an unusual shot--and it also displays what the alpacas on the Oregon coast think of snow. If you look really close you can see a couple of heads--but when there is snow they only seem to venture out to the pastures when the sun does.

This blog update is mainly made up of tax issues—not a surprise this time of year. The provision that continues to be one of the largest tax benefits all small businesses enjoy is Section 179. You only have four more days to take advantage of the increased deductions available in 2008. The limit for this year is $250,000 on qualifying asset purchases not exceeding $800,000. That deduction will be reduced to $133,000 on qualifying asset purchases not exceeding $530,000 next year.

Also available in 2008 is the 50% bonus depreciation deduction. There is no similar provision for 2009. This deduction only applies to new asset purchases. A maiden female alpaca qualifies as new for this deduction.

So review your tax position and seize the opportunity to take full advantage of these deductions before the clock strikes midnight on the 31st. It is not too late. Should you make the decision that buying your first alpaca or adding to your existing herd is the correct move for your particular tax situation be assured that contracts can be finalized up until that time. Much of the work can be accomplished via email, phone and fax. You do not need to take possession of the animals by midnight on the 31st.

If you have questions about any of the topics in this update feel free to contact us—we don’t want you to miss out on a single deduction.

Enjoy the remainder of the holiday season. We wish you a rewarding and productive 2009.

Don't look now--but tax time is almost upon us!

2008-12-17T22:10:00.000-08:00

Call me Scrooge--but this is just a little reminder to encourage you to start thinking about the items that need to be completed by December 31st. The IRS has recently published two very helpful releases.

One details the various credits available as well as deductions you may be entitled to if you take action by the end of the year. Just click on the title above for the full text. Not specifically listed--but very important--is your Section 179 deduction for the year. You must have purchased (financing is OK) and placed in service your qualifying asset by December 31 for Section 179 to apply. Don't forget the limits in 2008 are significantly greater ($250,000) than they will be in 2009 ($133,000).

The second announcement relates to the download version of Publication 17. The IRS has placed its comprehensive tax guide for individuals on IRS.gov, updating it for tax year 2008. The updated on-line version of IRS Publication 17, “Your Federal Income Tax,” contains more than 900 interactive links. Publication 17 has been updated with important changes for 2008, including information on the new recovery rebate credit, new first-time-homebuyer credit, and an additional standard deduction for real estate taxes. It has been published annually by the IRS for more than 65 years and has been available on the IRS Web site since 1996. As in prior years, the publication provides information on how to file an individual tax return, what to include as income, how to calculate capital gains and losses, how IRAs and other expenses can affect how much income to report, whether to take the standard deduction or itemize, and how to figure taxes and credits. Publication 17 is available on line, however, those who do not have access to the Internet can call 1-800-829-3676 to request a free copy from the IRS. Printed copies will be available in January 2009.

Wow--just about anything you would want to know about income taxes. Enjoy the holidays--but do spend some time reviewing these releases so you can take advantage of every credit and deduction to which you are entitled.

Happy Thanksgiving

2008-11-26T21:16:00.001-08:00

What better way to say thank you to each of you who follow our blog than to share a wonderful Thank You we received following a recent alpaca visit by a local group of little ones and their mothers.

Here is a photo of our visitors and their wonderful thank you (click on each to enlarge). These visits are always so much fun. The critters seem to enjoy them as well. Whenever we have visits including such energetic and curious minds I always wonder if any of them will grow up to be alpaca breeders. Hope so.

We wish you a heartful Thanksgiving and appreciate your ongoing support of our blog, website and breeding program. Enjoy!

IRS Announces 2009 Standard Mileage Rates

2008-11-24T12:44:00.000-08:00

IR-2008-131, Nov. 24, 2008

WASHINGTON — The Internal Revenue Service today issued the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be:

55 cents per mile for business miles driven
24 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations

The new rates for business, medical and moving purposes are slightly lower than rates for the second half of 2008 that were raised by a special adjustment mid-year in response to a spike in gasoline prices. The rate for charitable purposes is set by law and is unchanged from 2008.

The business mileage rate was 50.5 cents in the first half of 2008 and 58.5 cents in the second half. The medical and moving rate was 19 cents in the first half and 27 cents in the second half.

The mileage rates for 2009 reflect generally higher transportation costs compared to a year ago, but the rates also factor in the recent reversal of rising gasoline prices. While gasoline is a significant factor in the mileage rate, other fixed and variable costs, such as depreciation, enter the calculation.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Revenue Procedure 2008-72 contains additional information on these standard mileage rates.

Search for Loans, Grants & Financing

2008-11-22T20:19:00.000-08:00

During this difficult financial time it can be frustrating to find the capital you need to start or expand your business. Here is a great site to help you out. This is another one of the tools found at Business.gov. Search for Loans, Grants & Financing Just go through the 14 questions and hit the search button. It will give you a list of the potential funding sources.

But don't forget--another great source of financing is the seller of the alpacas you are wanting to buy. Most breeders you will find are like Alpacas at Tucker Creek and will work with you accepting payment in every form from cash, to credit cards to payment plans geared to your financial needs.

Also during the last week, the Small Business Administration (SBA) sent out a news release that "announced important loan program changes to help the agency's lending partners increase access to capital for small businesses". It is very apparent there is much being done in an effort to stimulate the economy.

2008 continues to be the best tax year to start any new business or expand an existing one due to the increased Section 179 deduction currently available at the $250,000 level coupled with the 50% bonus depreciation deduction. The increased deductions come at a very difficult time economically as they are each designed to stimulate the economy but many are afraid to commit to such a large financial obligation in light of today's economic climate. Just proceed with caution and budget a contingency fund to buffer you from any surprises.

2009 Inflation Adjustments-Including Section 179

2008-10-18T20:55:00.000-07:00

In a bulletin released on Thursday, the IRS announced the 2009 Inflation Adjustments and Expanded Tax Benefits taking effect 1/1/2009. You can read the full text by clicking on the above title. But you guys all know me--let's cut to the chase! What are the 2009 Section 179 deduction limitations?

$133,000 is the maximum deduction allowed on purchases not exceeding $530,000.

That is a reduction of $117,000 compared to the $250,000 deduction allowed for 2008. To date there has been no legislation extending the 50% bonus depreciation deduction through 2009. Looks like 2008 is the year with the best tax incentives for investing heavily in your alpaca business.

Now here is the rest of the release:

By law, the dollar amounts for a variety of tax provisions must be revised each year to keep pace with inflation. As a result, more than three dozen tax benefits, affecting virtually every taxpayer, are being adjusted for 2009. Key changes affecting 2009 returns, filed by most taxpayers in early 2010, include the following:

The value of each personal and dependency exemption, available to most taxpayers, is $3,650, up $150 from 2008.

The new standard deduction is $11,400 for married couples filing a joint return (up $500), $5,700 for singles and married individuals filing separately (up $250) and $8,350 for heads of household (up $350). Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.

Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $67,900, up from $65,100 in 2008.

The maximum earned income tax credit for low and moderate income workers and working families with two or more children is $5,028, up from $4,824. The income limit for the credit for joint return filers with two or more children is $43,415, up from $41,646.

The annual gift exclusion rises to $13,000, up from $12,000 in 2008.

Information about the pension and retirement plan-related changes can be found in IR-2008-118. Other inflation adjustments are described in Revenue Procedure 2008-66.

The standard mileage rate has not yet been released. We will keep you posted as soon as it is.

Did I tell you this was the most advantageous tax year to invest in your alpaca business?

Tips for Eating during a Power Outage

2008-10-14T12:06:00.000-07:00

Now that might sound like a strange title to appear on an alpaca site--but as many of you know we went ten days without power after a storm hit the Oregon coast early last December. And many of our friends throughout the country have gone through similar experiences. In our case, the dynamics of dealing with the storm for the 36 hours it ravaged our area was just the beginning of our ordeal. Once the storm was over and we realized that humans and critters were all well we had to deal with the damage that it left in its path and the inconvenience of no utilities. In the most recent newsletter from Peggy's alma mater--The Ohio State University--there is an article entitled "Power Eating". It seemed like a good article to share as the horrible storms throughout the country the past few years demonstrates that any time of the year can be storm season and can leave us with out power.

Be prepared before the storms hit--print these reports out and put them in your pantry or wherever you will be able to find them when the occasion arises. Check with a local electrician to secure a generator system to run at least a portion of your home so you can make it through the outage with the basics. For many of us keeping our food frozen is just a part of our concern--we also need to consider our plasma and colostrum supplies as well as the other factors which can affect our critters.

Power Eating
The wind storms that ravaged the state last month left many Ohioans without power for days. Among the difficulties: What to eat without a freezer, fridge, or oven?

Ohio State University Extension has tips that could help you prepare for another outage. An "Emergency Food Pyramid" includes three days of menus that don't require refrigeration or cooking. OSU Extension also has information on which freezer items are safe after a long outage.

http://www.ag.ohio-state.edu/~news/story.php?id=4829

Media Advisory: Food Safety, Nutrition Information During Power Outages
Writer: Martha Filipic filipic.3@cfaes.osu.edu (614) 292-9833

Ohio State University Extension has information about food safety for consumers who continue to experience power outages. Although consumers who don't have power won't be able to download these items, media might find the information valuable to share:

A six-page fact sheet, "Eating Nutritiously When the Lights are Out" contains an "Emergency Food Pyramid" and includes three days of menus of food that doesn't need refrigeration and that can be prepared without heating. http://fcs.osu.edu/hn/dowloads/emergency_food_pyramid.pdf

Another fact sheet, "Attention Freezer Owners: In case of power outage DO NOT OPEN!!!" is available at http://ohioline.osu.edu/home/freezer.html. It contains information on freezer storage during power outages and guidelines for safely refreezing thawed food.

For additional information or interviews, contact:Julie Kennel Shertzer, registered dietitian and program specialist with Ohio State University Extension in the Department of Human Nutrition Shertzer.6@osu.edu 614-292-3538

Just some food for thought!

Alpaca Farm Days--Two Days of Fun

2008-10-05T05:32:00.000-07:00

Alpaca Farm Days are over for another year. What a great weekend. Our friends, Clara and Dan Clifton from Alpacas at Dairy Creek in North Plains, OR, and our assistant, Korynn Greisen, joined us for the weekend. There was a steady stream of visitors both days--there wasn't even time for us take a break for lunch.

Here is a photo of Dan Clifton allowing Jumpin Jack Flash to enjoy a hug from a very happy little visitor.

Our incredibly talented fiber artist, Peggy Boisvert, joined us and shared her skills with our visitors. She is very willing to explain the process involved in turning fiber into yarn and was wonderful with the children who found her spinning fascinating (they are not the only ones--Peggy just watched in amazement when she wasn't answering alpaca questions).

Sunday was the first day we put a halter and lead on Wilson Jr. He

certainly did his father proud. We

allowed him to walk around with Jumpin Jack Flash for a while and he was a natural. Here he is getting some hugs from Peggy's sons, Nikolai and Gabriel.

There was a great deal of interest and we thank our friend Denise Ness at Farm House Funk for sending a steady stream of visitors. We were also very fortunate in that the newspaper thought our event worthy enough to feature us in two sections of the paper--this one was especially fun as it was perfectly centered on the front page of Friday's Daily Astorian section where they highlight what is happening around town.

Lots of ideas for next year's event are being noted and follow-up calls being placed. This weekend is just such a great opportunity to share these critters with the community. More than once we heard people say they drive by all the time and were thrilled to get the chance to meet them and learn more about them.

When Stocks Tank, Some Investors Stampede to Alpacas and Turn to Drink

2008-10-05T04:56:00.000-07:00

This article by JENNIFER LEVITZ appeared in the Wall Street Journal on Friday. This will probably not be the last such article to discuss investors turning to tangible investments. Also in line with that philosophy there is going to be a focus away from the 9 to 5 rat race toward a more simpler life style. Between the election and the bail outs our society is ready for a change and the alpaca industry has much to offer those wishing to make that transition.

Enjoy the article--it appears below:

Who can blame an investor for taking to the bottle?

Andy Pick, a 49-year-old stay-at-home father in Atlanta, recently bypassed the stock market for liquid assets -- $120,000 in champagnes. He bought 400 bottles, mostly 1996 vintage, that he says he plans to "sit on" for 10 or 15 years and then sell at a profit.

"It sure beats looking at a Merrill Lynch monthly statement," he says, adding, "The worst thing that could happen is that I drink all of it."

Given the gyrations in the financial markets, some investors are abandoning stocks and bonds and seeking refuge in unusual alternatives -- parking spaces, for instance, and condos in Peru. Sales of exotic livestock are up. The U.S. Mint has seen a gold-coin rush.

Associated Press

Peggy Parks invested in alpacas, which she believes have a better outlook than most mutual funds.

Investors have long turned to hard assets in market downturns, the idea being that if you invest in something real, it won't disappear, even if its value declines. But analysts say this downturn is different in that real estate, the most traditional safe haven, is also sinking. Between July 2006 and July this year, home prices dropped 19.5%, according to the S&P/Case-Shiller 20-city composite home price index.

After the market dropped in January, Steve Borter, the 56-year-old president of a heating-and-air-conditioning company, did invest in real estate, but not the usual sort. He became landlord of a single parking space in Chicago. He bought a 12-by-20-foot spot in the Field Harbor Parking Garage for $29,000 and rents it out. "The stock market is indicative of a lot of uncertainty. With a parking space, at least you end up with something," he says.

Peggy Parks, a 49-year-old auditor in Johnstown, Pa., turned to an unusual farm animal. "I've lost a fortune in stocks, and my 401(k) is falling through the floor. I feel comfortable in alpacas," she says. She invested $56,000 in a small herd that she believes has a better outlook than most mutual funds because of the animals' breeding potential.

The national Alpaca Registry Inc., in Lincoln, Neb., says registrations are on pace to rise 7% this year and currently stand at 140,297. Ms. Parks says a female of "medium quality" can fetch $10,000 and that prices have been rising, supporting her hopes that she'll see a profit on her alpaca portfolio in five years.

Tangible Assets
Financial firms are reporting that a growing number of retirees are rolling their money out of ordinary individual retirement accounts -- commonly stocks, bonds and mutual funds -- and into self-directed IRAs, where almost anything goes. "We've had people invest in a cypress farm in Costa Rica, and a condo in Croatia," says Tom Anderson, president of Pensco Inc., a San Francisco firm that has $3.3 billion in self-directed IRAs under custody. He says 20% more assets flowed in over the past three months than in the same period a year ago.

Pat Roque/Associated Press

The New Gold Rush

In Centennial, Colo., Tim Boykin, 56, a retired engineer, says he pulled his entire nest egg of nearly $1 million out of stock and bond funds in August and put it into a self-directed IRA. He invested some of the money in his niece's company -- which is building condos in Lima, Peru. While analysts warn that real-estate investments in emerging markets are risky, Mr. Boykin says he has done his research and remains confident: "I can see pictures of the land. I can see steel. I can see people working. When I put my money in a fund, I see a big list of things that don't sound good."

Ruff Times
Not everyone thinks alternative investments are a great idea. The Alabama Securities Commission over the weekend issued an "investor alert" urging caution. People are "panicking," says securities director Joseph Borg. He worries that investors who yank their money out of the stock market are prey for con artists hawking things like phantom oil wells.

Mr. Borg, past president of the North American Securities Administrators Association, adds that in past market downturns he saw people turn to chinchillas, worm farms and super-breeds of rabbits. Emus, too, were big. "Eventually, people got tired of them and just let them go," he says. "To this day, you'll be in West Texas and a big emu running wild will just come up next to your car."

Hard-asset gurus like Howard Ruff, a best-selling author who rose to fame in the inflationary 1970s, are convinced their moment has come again. "This is a big, big time, a very big time -- and this is just the beginning," says Mr. Ruff. He has been advising people to buy bags of pre-1965 U.S dimes and quarters, which are 90% silver and in limited supply.

Gold coins also are in great demand. Last week, the mint suspended sales of American Buffalo 24-karat gold coins because it can't keep up with soaring sales. Last month, a record 14,000 bidders -- 17% more than the previous high -- turned out for a coin-and-currency auction in Long Beach, Calif., that generated $35 million in sales.

Bob Sale
Bob Sale, a Blue Bunny brand ice-cream distributor in Colorado Springs, Colo., says he purchased American Eagle gold coins last week after his 401(k) retirement account tanked. "Holding them in your hand is like no other feeling," he says.

Mark Craddock, manager of Comic Book World, in Florence, Ky., says stock-market investors also are turning to superheroes. "There's kind of a buying frenzy" in vintage comic books, he says.

The "Silver Age Comic Book Pricing Index" of 32 frequently traded '60s comics, was up 14.2% in the 18 months ending in July, while the Standard & Poor's 500 stock index was down 11% in the same period. Mark Haspel, president of Certified Guaranty Co. in Sarasota, Fla., which grades comic books, often for investors, says it's on track to handle 200,000 books this year, up from 150,000 in 2007.

"Spiderman is going to be here in 20 years -- he's not going away," Mr. Haspel says.
Write to Jennifer Levitz at jennifer.levitz@wsj.com

Alpaca Farm Days Package #8

2008-09-26T22:48:00.000-07:00

Three Late Term Pregnant Females--these ladies are all scheduled to deliver by the end of October--Athena and Lola should deliver any day. If purchased individually their current list prices would total $44,250.

Price: $39,000

Alpacas included in package: (3 alpacas)

Chelsea's Athena - Huacaya, Bred Female, White

Chelsea's Athena is a pure Peruvian, bred female. She has head-to-toe coverage of absolutely gorgeous fiber, dense, crimpy and bright. She is an excellent and attentive mom, giving trouble-free births and producing plenty of milk. She has been bred to Moore Brook Apollo with an anticipated due date of 9/11/08.

HA Skyla - Huacaya, Bred Female, Medium Brown

Skyla's fiber is very uniform throughout her fleece. She has a very soft handle. To date even when bred to white her cria have been a shade of brown or beige.

Moore Brook Lola - Huacaya, Bred Female, Medium Fawn

Lola is a very sweet tempered female with dense crimpy fiber. Her lineage includes every color from white to true black and she is currently bred to Greybeard's Molokai who is a dark rose grey.

Alpaca Farm Days Package #7

2008-09-26T22:36:00.000-07:00

Get October Fest and 1/2 interest in her male cria at
side for the current list price of the dam. This includes full possession of the male cria. At his current age it is too soon to tell if he will have a future as a herdsire. This is a great opportunity to get some wonderful genetics for your future herd development at no financial risk.

Price: $10,750

Alpacas included in package: (2 alpacas)

October Fest - Huacaya, Female, Medium Rose Grey
October Fest is stunning with soft handling fleece. Interesting mahogany/coffee roan gray with beautiful profile. She has given us a beautiful female cria in Tucker Creek's Zafiro so she is priced to sell so she can do the same in your pasture. Buy her soon so you can

select this year's breeding.

Rocky Road - Huacaya, Male, Medium Fawn
Another gorgeous Sun Tzu male--vigorous and curious.

Alpaca Farm Days Package #6

2008-09-26T22:27:00.000-07:00

Get Mia and 1/2 interest in her male cria at side for the current list price of the dam. This includes full possession of the male cria. At his current age it is too soon to tell if he will have a future as a herdsire. This is a great opportunity to get some wonderful genetics for your future herd development at no financial risk.

Price: $17,750

Alpacas included in package: (2 alpacas)

Mia - Huacaya, Female, Light Rose Grey
Beautiful little lady will make a classy addition to your herd. She has a wonderful disposition. Her heritage includes a wide variety of colors ranging from white to fawn to dark silver grey so if you are looking to add some color to your herd she would be a wonderful choice.

Buckeye - Huacaya, Male, Pattern
Tucker Creek's Buckeye is a very dense crimpy energetic cria born of a beautiful rose grey dam and MSA Hemingway's Bogart--who is doing a wonderful job of following in his famous father's foot prints.

Alpaca Farm Days Package #5

2008-09-26T22:16:00.000-07:00

Get Loki and 1/2 interest in her male cria at side for the current list price of the dam. This includes full possession of the male cria. At his current age it is too soon to tell if he will have a future as a herdsire. This is a great opportunity to get some wonderful genetics for your future herd development at no financial risk.
Price: $14,750

Alpacas included in package: (2 alpacas)

Loki - Huacaya, Female, Medium Fawn
Loki is a beautiful fawn greatgranddaughter of Peruvian Hemingway. She has a bit of color in her background including grey. She has a nice soft handle with ample staple length.

Heath - Huacaya, Male, Dark Brown
Heath is SNF Loki's first cria and he demonstrates all the characteristics you would expect with Peruvian Hemingway and Peruvian Alpamayo in his ancestry. As we have found with all of Sun Tzu's cria--they are dense with great color.

Alpaca Farm Days Package #4

2008-09-26T22:10:00.000-07:00

Combine Packages 1 through 3 for a combined price of $60,000.

Six females, (5 of them Studmaster bred females). If purchased separately current combined list price $87,500; current combined package price $65,750.

Price: $60,000

Package #1
Elana - Huacaya, Female, Dark Brown
Toffee - Huacaya, Female, Medium Brown

Package #2
Bugaboo - Huacaya, Female, White
Luna - Huacaya, Female, Pattern

Package #3
Franchesca - Huacaya, Female, White
Bliss - Huacaya, Female, Beige

Alpaca Farm Days Package #3

2008-09-26T22:05:00.000-07:00

Tucker Creek's Franchesca along with her female cria at side, Tucker Creek's Bliss. Franchesca is a first generation Studmaster female out of VIAC Karoline bringing the fineness of Acero Marka's Rockamundo matched with Studmaster MSA Hemingway's Bogart. Incredible fineness on both sides of the family tree.

Price: $28,750

Alpacas included in package: (2 alpacas)

Franchesca - Huacaya, Female, White
Wonderful female from award winning impact herdsire, Studmaster(tm) MSA Hemingway's Bogart! Mom is a Rockamundo daughter and consistently throws fine fleeced beauties

Franchesca has an incredible fleece ... 21.0 microns at three years of age. She is solid, strong and has beautiful comformation.

Franchesca has given us two beautiful female offspring in Tucker Creek's Lollipop and Tucker Creek's Bliss--so she is priced to sell so she can do the same in your pasture.

Bliss - Huacaya, Female, Beige
Bliss is part of a long line of females. Her granddam has only had one male and each of the female offspring who have been bred have only had female cria. She is strong and curious demonstrating the genetics of Sun Tzu. Her mother's line brings fineness and Sun Tzu's density and crimp.

Alpaca Farm Days Package #2

2008-09-26T21:55:00.000-07:00

Oar's Bugaboo along with her female cria at side, Tucker Creek's Luna. Luna is a first generation Studmaster female out of a breeding with Studmaster EC Sun Tzu.

Price: $14,250

Alpacas included in package: (2 alpacas)

Bugaboo - Huacaya, Female, White

Bugaboo is a pretty blue eyed white with good conformation and coverage. We were so pleased with her 2008 cria she will again be bred to EC Sun Tzu for 2009.

Luna - Huacaya, Female, Pattern

Tucker Creek's Luna is another wonderful example of a Sun Tzu progeny. She has wonderful dense crimpy fiber. She has a wonderful curious disposition which is another trait found in Sun Tzu cria.

Alpaca Farm Days Package #1

2008-09-26T21:52:00.001-07:00

Faiks' Elana along with her female cria at side, Tucker Creek's Toffee. Elana is a first generation Studmaster female out of Faiks' Athena and Studmaster El Toro. Elana has only had female cria to date. Toffee is the result of a breeding with Studmaster MSA Hemingway's Bogart.

Price: $22,750

Alpacas included in package: (2 alpacas)

Elana - Huacaya, Female, Dark Brown
Elana is a beautiful chocolate brown female. Fantastic coverage with a gorgeous head and a dense fleece. She is a wonderful proven mom having delivered four incredible females to date . . . one dark chocolate and two perfectly white and the fourth a lovely toffee color. Elana is sold with a breeding to MSA Hemingway's Bogart . . . we have had such great results the last two years we are repeating it again.Elana has given us four gorgeous female cria--how lucky can we get--she is priced to sell so she can do the same in your pasture next year!

Toffee - Huacaya, Female, Medium Brown
Lighter brown cria out of a gorgeous dark brown female. Toffee's grandsire is El Toro and her sire is Hemingway's Bogart. She is an incredible second generation Studmaster female capable of bringing color, density, crimp and great conformation to your herd.

Alpaca Farm Days - September 27th and 28th

2008-09-15T23:15:00.001-07:00

During the last weekend in September you will find alpaca farms all over the United States and Canada opening their gates to welcome the public creating a great opportunity to share information about the breed and a chance to get a better look at these wonderful animals.

Alpacas at Tucker Creek will be open from 10:00 am to 4:00 pm on both Saturday, September 27th and Sunday, September 28th. During the weekend you will have the opportunity to see the daily activities involved in working with alpacas including cleaning the barn and pastures, feeding, toe nail trimming, shearing and breeding--depending on your time of arrival. There will also be farm tours and fiber spinning demonstrations. We are fortunate to have local fiber artist, Peggy Boisvert, joining us for part of the weekend. Alpaca yarn and finished products are available in our farm store--a great way to start your Christmas shopping.

Please join us as we love sharing these wonderful animals with visitors. Refreshments will be served and we will have drawings for male alpacas and alpaca products. Look forward to seeing you there. Please follow this link for directions.

September Cria Update

2008-09-14T01:08:00.000-07:00

The month of September is half over and the timing on Peggy's return to the farm from her recent travels could not have been better--five cria arrived in five days. She had barely landed in Portland on September 9th when Tony called to tell her NWA/Faiks' Elana had delivered a beautiful Bogart female we have since named Tucker Creek's Toffee. She is a second generation Studmaster who is a beautiful coppery brown color with the signature density and crimp of Hemingway's Bogart. Her grandsire is Studmaster El Toro. Elana continues to be a very protective mom spitting at all of us as we have tended to Toffee's needs. But spitting aside--you gotta love an alpaca who has presented us with four female cria to date--Cocopuff out of Gallant Deed, Ivory out of Glacial Storm and Clearwater and Toffee out of Hemingway's Bogart.

The morning of September 11th at 9:11 AM K-2's Chandra owned by Parson's Prairie Farm presented us with a very crimpy dense beige Hemingway's Bogart female cria they appropriately named Tribute in honor of the date and time she was born. She is a second generation Studmaster with K-2 as her grandsire. Simply gorgeous. To date Chandra has also only had female cria--Tucker Creek's Juliette out of Glacial Storm and Tucker Creek's Khani and Tribute each out of Hemingway's Bogart.

The next day NWA/DKM Dakotah presented Parson's Prairie Farm with another Bogart cria--a medium fawn male named Fenway--very dense and crimpy. Dakotah is the ultimate mom.

One day later we were presented with two Sun Tzu male cria. The first, Tucker Creek's Heath, is a handsome dark brown male out of SNF Loki, a beautiful great granddaughter of Peruvian Hemingway. Heath is her first cria and she had a text book delivery.

October Fest was in labor a good portion of the day and was a very attentive auntie to the rest of the newborns in her pasture. Finally, late in the afternoon she presented us with a wonderful medium fawn male we have named Tucker Creek's Rocky Road. He is pretty much in non-stop motion. We never got a really good look at him nursing as he always a backed off when we checked--however, he continued to be in constant motion so we knew he had to be eating. Finally, we saw him nurse heartily so we could quit worrying. This is a shot of him checking out his new legs.

As long as we are doing updates on cria--check out this shot taken over the weekend of one of last year's cria--Tucker Creek's Journey out of Dakotah and Sun Tzu. The Overbey's of Parson's Prairie Farm sent me this shot showing Journey and Kellie Overbey getting ready for the fall show series--what a handsome Studmaster progeny. Nice job, Kellie.

With ten more births scheduled through the end of October we are thrilled with this year's group of Studmaster offspring.

IRS Has Created a Small Business Tax Center

2008-09-07T11:27:00.000-07:00

The Internal Revenue Service has been adding many user-friendly links to their site over the last few years. One of the most recent additions is geared directly for small business. They have created the Self-Employed Individuals Tax Center. It provides key sections identifying "who is self-employed?"; if you are a new business they give the key points involved in Starting a Business as well as Operating a Business; they identify the key differences between Independent Contractors and Employees; highlight the various taxes you may be responsible for; how to find a tax preparer along with the forms you will be required to file and identifying the types of resource materials also available on their site.

If you look off to the left side of the page they also have additional links for Farmers and various other small business topics.

Small Business/Self-Employed
Farmers
Industries/Professions
International Taxpayers

Small Business/Self-Employed Topics
A-Z Index for Business
Small Business Events
Stakeholder Headliners
Small Business Videos
Partners & Stakeholders
Self-Employed Individuals
State Links
Subscribe to e-News
More Topics . .

IRS Resources
Compliance & Enforcement
Contact My Local Office
e-file
Forms and Publications
Frequently Asked Questions
News
Taxpayer Advocacy
Where To File

When you click on the link for Farmers you will find links to the various Publications we have mentioned in previous blog entries and seminars as well as tax tips specifically for agricultural business.

Take some time to review these links and get a comfort level for those issues you had questions about last year. You can also use the Business.Gov Toolkit on the right side of our blog if you have a question--just type in a topic in the search box and click on "search".

These are some great links to keep in your favorites--but don't hestitate to contact us with any questions you have. As a reminder, Peggy will be joining Fred Kraft at Northwest Alpacas on Wednesday, September 24th for a tax webinar from 5:00 to 6:30 pm and for a day long tax and business planning seminar on Friday, October 17th. Here are the links for each.

On-line Webinar--Wednesday, September 24th from 5:00 to 6:30 pm
http://www.alpacas.com/AlpacaInstitute/Enroll.aspx?CourseID=WS3

Alpaca Business and Tax Planning--Friday, October 17th
Northwest Alpacas, 11785 SW River Road, Hillsboro, OR 97123
http://www.alpacas.com/AlpacaInstitute/Enroll.aspx?CourseID=ODS5

Cria Update

2008-09-03T19:45:00.000-07:00

Wow, September is here and we still have 15 more cria scheduled to arrive through mid-October. Since our last cria update on July 25th we have had three more deliveries--two female crias out of EC Sun Tzu and one male cria out of MSA Hemingway's Bogart.

On July 31st we were very happy with the arrival of Tucker Creek's Shea, a beautiful Sun Tzu female out of BW Saphirreshope AATC. Hope is owned by Parsons' Prairie F arm in Gladstone, MO. Shea is a second generation Studmaster female with her grand herdsire being MSA Peruvian Cannonero. Yes, that is a jacket on Shea--just because it was almost August doesn't mean it can't get cold on the Oregon coast. It got down to 47 degrees over night on the day she was born. Kim and Jeff Overbey own the virtual alpaca farm and have chosen to name this year's crias after ball parks--they already have a handsome little man named PARSONSPF Wrigley. What a great idea!

Two days later on August 2nd Oar's Bugaboo delivered a beautiful EC Sun Tzu baby girl. This little one was brought
into the world with the help of Tony Dejesus, one of the great guys who helps us run our farm. Korynn, our assistant, and Peggy were enroute to Northwest Alpacas to return Paul Revere and pick up Glacial Storm when they got the call that a new cria was in the pasture. Tony very handily took care of all the necessary new born issues and in return he got to name her. Tucker Creek's Luna is a very strong dense example of her father. With Bugaboo being a blue eyed white we, of course, had the concern her cria might also have blue eyes. Our history with Sun Tzu to date has been zero blue eyes so he is becoming our go-to guy for clients with blue-eyed females.

Our most recent addition was born on August 13th. It is a beautiful male out of our rose grey SNF Mia and MSA Hemingway's Boga rt. The little guy has been named Tucker Creek's Buckeye. One of Peggy's best friends recently passed away after a lingering illness and they spent many hours over the years discussing the ups and downs of The Ohio State University Buckeyes. It seemed only appropriate to honor him by naming this little guy after their favorite team. As with all our Bogart babies--he is soft and crimpy.

The next wave of little ones should start arriving around the middle of September--will post another cria update early next month. Enjoy!

Great Time to Clean Up Your Home Office

2008-08-31T19:03:00.000-07:00

Knowing that the thought of taxes may already be a distant memory for many of you--and for some still the nagging realization that October 15th is looming ever so near--we thought this might be a good time share some office clean up info. The article below appeared in the San Diego Union and I thought it was a really good summary.

By Claudia Buck

MCT NEWS SERVICE
August 31, 2008

Feeling buried beneath piles of paper? Are your grocery receipts and 401(k) statements stuffed in a desk drawer or spilling out of your in-basket? Take heart. You've got lots of fellow paper pack rats, particularly with the tax season behind us.

What to keep and what to toss?

“We get these questions all year, but especially after tax time,” said Diana Muller, an enrolled agent and partner with Sacramento-based Just Taxes. “This stuff piles up.” To clean up your home office or kitchen table, here's a guide to financial record-keeping and discarding.

To get started, gather a pile of file folders, marked by subject (“Retirement account,” “Taxes,” “Vehicles,” etc.). Invest in a file cabinet or secure box. For documents you want to keep, consider getting a small safe or safety deposit box. As backup, keep copies of important documents in your computer.

Taxes: Generally, keep your final tax return forever. But all the tax-related documents that go with it need to be kept for only three to four years (how long you're subject to a possible audit). If you think you may have understated your income, keep documents up to seven years.

Canceled checks: Whether you bank online or in person, you can discard after one year. However, keep copies that might be needed for taxes, warranties or other insurance reasons.

Investments, 401(k)s: Keep all documentation of a purchase or sale of any stock, bond or mutual fund. Either make a separate file or lump them all together. Once it's sold, keep records for seven years. For IRA and other retirement accounts, keep monthly statements until your end-of-year summary arrives.

Vehicles: Keep all maintenance records and paperwork related to your car, until it's sold. Then give the file to the new owner.

ATM, credit card receipts: Keep until you can check them against your monthly statement; toss if they reconcile. Keep receipts for insurance claims or tax deductions. And if it's for a consumer product, attach it to the warranty for future proof of purchase.

Home-related documents and receipts: Keep records of all home improvements until you sell the house because they can be deducted against capital gains at tax time. Phone and utility bills can be tossed after a year, unless you're deducting a portion for business expenses.

Documents to keep forever: Birth and marriage certificates, current passports, home inventory (for insurance records), Social Security cards, “pink slips” for vehicles, stock-purchase agreements, tax returns, current insurance policies and divorce papers.

Don't toss it, shred it: When in doubt, shred any paperwork that contains personal financial data, especially Social Security numbers, PINs or passwords, bank documents, signed contracts or leases, even travel itineraries or used airline tickets.

If you would like to research this topic further there is some good information available from the IRS in Publication 583 entitled Starting a Business and Keeping Records. It provides a sample of a record keeping system for your business along with sample reports.

Once you get a system in place all your record keeping will be much easier as you will know what to do with each piece of paper when it hits your desk.

Tax Computation Related to the Loss of an Animal

2008-08-30T18:30:00.000-07:00

Since originally posting this entry on July 24th I've done some further research as well as having shared a conversation with Joanne Brush (Brush Walker Alpacas in Geneseo, IL). Unfortunately, George and Joanne had to go through this process last year when they lost King Arthur--an incredibly handsome Hemingway son.

As it turns out what I had originally shared stating that the replacement animal needed to be the same sex as the animal it is replacing is not the case. You can replace the animal with either sex. It only states it must be the same species. You can't replace an alpaca with a dairy cow; but you can replace a herdsire with a female. Treasury Regulations Sec. 1.1033(a)-2 states the replacement property must be similar or related in service or use. It does not state they must be the same sex. The provisions of this section are not as strict as the like-kind exchange rules found under IRC Section 1031. The reason for the leniency is one (like-kind exchange) is planned and the loss of your animal is not.

Additionally, IRC Section 1033(a)(2)(A)(i) states property you own (alpacas in our case) can be the replacement property for the lost animal if they are owned by you on the date of death of the animal you are replacing. For example, in addressing the loss of our female, Athena. We can look at the tax basis of any of the alpacas we owned as of July 16th and apply any gain to the basis of as many animals as we need to absorb the gain. The gain will ultimately be realized upon the sale of each of the alpacas we used as replacement property.

The details of the replacement must be included in your tax return within two tax years of the death of the animal. If no replacement is made then an amended return for that year is required.

Hope this clarification helps when you have to face this difficult time.

As posted on July 24th:

Filling out insurance papers and reviewing necropsy results with our vet just got me thinking that what happened last week will happen to all of us sooner or later--we all hope for later--we lost our first adult alpaca on the farm on Wednesday, July 16th. We have lost crias before--and that is not any less painful--but I haven't had four years of experience with that wonderful little creature as I did with Athena. We have lost adult alpacas in the past but they have always been at one of our clients' farms--like Wilson or King Arthur. Shocking and very upsetting when you hear about it--but not right in front of you. Athena was not the most gorgeous girl on the block--some might think down right ugly by some standards--but she was a great mom and the Studmasters she was bred to helped to create some beautiful crias.

Some of our friends and clients have also had some losses this year so I thought it might be a good time to share the tax impact of the loss under a variety of different scenarios.

In our example we will assume the following:

The purchase price: $20,000

Depreciation taken to date: $8,100
Net book value of $11,900 ($20,000 less $8,100)

There was no insurance on the animal

The difference between the cost and the depreciation taken to date (net book value) is your taxable loss. The actual accounting entries to remove the asset from your accounting records would be

Debit - Gain/Loss on death of alpaca for $11,900

Debit - Accumulated Depreciation for $8,100 (zeros out the prior activity for this alpaca)

Credit - Breeding Herd (zeros out the original purchase of the alpaca)

If the animal was part of a note payable when the animal passes then you will be covered by insurance (as all contracts require that the animal be insured during the entire term of the loan). The only difference in treatment compared with the entry above reflects the insurance proceeds received. So if the animal was insured for $20,000 your entry would look like this:

Debit - Note Payable (and/or Cash) for $20,000

Credit - Gain/Loss on death of alpaca for $20,000

When you look at the activity in each of the accounts you would see that the asset accounts have been zeroed out and only the Gain/Loss account has a credit balance of $8,100 (net of the debit of $11,900 and the credit of $20,000). This gain is taxable unless you purchase a replacement animal within the two year time allowed. A replacement animal is an animal of the same species and same sex used for the same purpose.

You can postpone reporting the gain if you spend the reimbursement to replace the animal. To postpone reporting all the gain, the cost of the replacement property must be at least as much as the reimbursement you receive. If the cost of the replacement property is less than the reimbursement, you must include the gain in your income up to the amount of the unspent reimbursement. In our example you received insurance proceeds of $20,000, if you replaced the alpaca with a similar animal but only spent $18,000 you would need to report a gain of $2,000. Depending on the timing of the replacement purchase you may have to amend the return for the year of loss.

Please let me know if you have questions on how this actually shows up on your return--and also let me know if I have completely confused you. Bottomlime--It is the one time you feel good about your decision to pay those insurance premiums.

Grandparents' Tour

2008-08-24T09:00:00.000-07:00

Yesterday we were happy to have the Philadelphians Group Tours join us again with their Grandparents' Tour for the second time. They last visited our farm in August of 2006. It was just as impressive as the last time when the big white tour bus pulled into our barn yard and 33 eager visitors appeared--quite fun.

This time was equally enjoyable for all of us. I'm not sure who has more fun--our visitors or us. Their smiles and laughter were infectious. As always, Sun Tzu was ready to act as our official farm ambassador welcoming everyone as they exited the bus.

Also joining us for the day's visit was Peggy Boisvert, a very talented local fiber artist. Peggy brought her spinning wheel to demonstrate the process of spinning the raw fiber into yarn. She also displayed some yarn she had spun from Tucker Creek's Franchesca's fiber.

We would like to thank the Grandparents' Tour for their visit and hope they join us again soon.

2008 CASH SALE

2008-08-22T01:04:00.000-07:00

Every one is heading for the 2008 Cash Sale--including the critters.

Normally this sale occurs at the end of the year—but this year there are so many wonderful tax benefits we wanted to make sure you had plenty of time to use them and make the most of your tax planning opportunities.

As a reminder the Section 179 deduction was increased to $250,000 (with an $800,000 ceiling) and a Special 50% Bonus Depreciation deduction was added. The 50 Bonus Depreciation deduction requires that the purchases be new--in alpaca terms that would be a maiden either bred or unbred. So far we don’t know if the IRS is going to extend these deductions at this level beyond 2008. So we decided to begin the sale in August. This year you will have the opportunity to buy some wonderful bred females who will deliver this year—another facet not normally realized when we have the sale at the end of the year.

So, let's get to the details. All these are for cash sales (as usual--we will consider payments over three months the same as cash). If cash is not in your budget right now, we have very favorable financing terms we can arrange for you (the pricing will just not be as good as the Cash Sale pricing).

If you buy one alpaca the price is discounted 20% off of the list price.

If you buy two or more alpacas you will pay the 30% off the list price for the entire package.

This is a great opportunity to add some Studmaster genetics to your herd, do some tax planning and save some money all at the same time. If you have any questions email me at peggy@alpacadigest.com or call toll free at 877-915-0522.

Charitable Contributions

2008-08-06T19:58:00.000-07:00

Did you make a cash contribution to your favorite charity? Have you recently spent a weekend cleaning stuff out of your garage or basement that you then donated to a local charity?
Charitable contributions can be tax deductible, but you must have the proper records to support your deduction. Due to the Pension Protection Act of 2006 the rules on record keeping for charitable contributions became a little more strict beginning in January 2007.

To deduct a charitable cash donation, regardless of the amount, you must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. Acceptable bank records would include canceled checks or bank or credit union statements containing the name of the charity, the date and the amount of the contribution.

Under the previous rules, records such as personal bank registers, diaries or notes made around the time of the donation could often be used as evidence of cash donations. Personal records like this are no longer sufficient.

Here are some additional tips to help you deduct your charitable contributions on your 2008 federal tax return.

Charitable contributions are deductible only if you itemize deductions using Form 1040. (If you are a partnership or a sub-chapter S corporation the deductions will appear on your K-1 with instructions for their inclusion on Schedule A of your Form 1040. Only if you are a regular corporation will you reflect a charitable contribution on page one of your federal tax return.)
Contributions must be made to a qualified organization.

Used clothing and household items such as furniture, linens and appliances must be in good used condition.

Vehicle donations are subject to special rules.

To deduct charitable contributions of items valued at $250 or more you must have a written acknowledgment from the qualified organization.

To deduct charitable contributions of items valued at $500 or more you must complete a Form 8283, Non-cash Charitable Contributions, and attached the form to your return.

So all of this is fine and good; but, how does it apply to alpacas? The rules as found in Publication 526, page 11, state that if the asset contributed is ordinary income or short term gain property you are limited to its fair market value less the amount that would be ordinary income or short term capital gain if you sold the property for its fair market value. Generally this means you are limited to your basis in the asset as your deduction. Example-you have a male you want to donate to 4-H whose value is $1,000. He was born on your farm. The deduction computation would be the FMV of $1,000 less the ordinary income you would generate if you sold him of $1,000 resulting in a deduction of zero. However, if your property donated is considered capital gain property your deduction can be the fair market value which would result in a $1,000 deduction in the above example.

More information is available on the IRS Web site at IRS.gov. A good resource is IRS Publication 526, Charitable Contributions, found on the web site or by calling 800-TAX-FORM (800-829-3676).

Remember that for the genuine IRS Web site be sure to use .gov. Don't be confused by Internet sites that end in .com, .net, .org or other designations instead of .gov. The address of the official IRS governmental Web site is http://www.irs.gov/.

Above article courtesy of the Internal Revenue Service--with a few clarifications interspersed.

Cria Update--2 more

2008-07-25T20:46:00.000-07:00

On July 14th Cocopuff presented us with a very handsome MFI Peruvian Providence male cria by the name of MRN Moche of Providence. He is a third generation Studmaster progeny with Providence as sire, MFI Peruvian Gallant Deed as the sire of his dam and El Toro 605 IMPG98 the sire of his granddam, Faik's Elana. He has the whole package as would be expected from his lineage. The rest of the names in his lineage would be the who's who of alpacas--Ppperuvian Royal Fawn, Ppperuvian Augusto, My Peruvian Rolex, 6Peruvian Accoyo Titan and last but not least Ppperuvian Mr. President. Moche is proudly owned by Alpacas of Marin.

The most recent addition appeared yesterday afternoon, July 24th.

Autumn Sunshine delivered the third of Tucker Creek's Wilson's offspring. As you may recall, Wilson died on February 2nd so each of his offspring are very special to us. Following the candy theme for this year his name is Tucker Creek's Big Hunk. With him comes a mixture of Peruvian Hemingway out of grandsire El Bello, Ppperuvian Augusto out of MFI Peruvian Glacial Storm and a bit of Accoyo on Autumn's side of the family tree--El Bello's dam is full Accoyo, PPPeruvian Julia.

Eighteen more little critters are expected this year. With the eight cria who have arrived so far the boys are winning--two girls against six boys--but Candy and Cherry Garcia are doing a good job of keeping those boys in line.

2008 Cooperator of the Year

2008-07-20T09:40:00.000-07:00

Who would have thought I would receive an award for being cooperative--certainly not my parents.

You can click on the image to the right to read the article. Working with the Clatsop Soil and Water Conservation District we were able to build a dry manure facility. It has made that section of our property much more attractive while meeting the environmental constraints of being surrounded by water with wetlands on two sides and the creek on the third side of our pastures. Over the years quite a few local gardeners have come by for a load to augment their soil with wonderful results--with this upgraded facility we should be able to have a much more userfriendly end product.

Much to Sun Tzu's dismay they didn't select the photo featuring him--they selected the one critter on the farm who could care less about being in the limelight--my opinionated mustang mare, Tess.

Boundary Waters Alpacas is headline news

2008-07-18T10:28:00.000-07:00

What a fun surprise. Along with the bills and the advertising we received a wonderful bit of news in the mail a few days ago. We opened the envelope to find pictures of our beautiful Kikisan, Party Girl, Hersey Kiss and their respective offspring along with the headline "Ely Farm Home to Gentle Alpacas" on the front page of one of the sections of the Sunday edition of the Mesabi Daily News. It was just so fun to see our critters in the paper--and Kikisan was born on our farm so that was doubly fun.

It was a lovely article and helps to promote the lifestyle and benefits of alpaca ownership--not to mention the marketing opportunities this type of publicity can create. Jan is a busy real estate executive (contrary to what the article says--she may have sold the business but she still puts in a full week's work at the real estate office) so if she can find the time to take care of these wonderful critters most others could do the same.

Congratulations to Boundary Water Alpacas for reflecting what is best about this industry.

Husband and Wife "Qualified Joint Venture"

2008-07-12T00:14:00.000-07:00

Leave it to the feds to name a husband and wife unincorporated business as a "qualified joint venture". What that really means is that if you and your spouse are operating an unincorporated business jointly then you don't have to be treated as a partnership any longer. Prior to the Small Business and Work Opportunity Tax Act of 2007 a husband and wife who were operating a business together were technically a partnership and were required to file a partnership return. The change made in the recent tax law was designed to make filing our taxes easier.

LLC's are not a federal designation. They are a state recognized entity. A single member LLC is viewed by the IRS as a "disregarded entity" and the income or loss is reported as part of the individual's Form 1040. We made an assumption that the change made in the 2007 law would also apply to activities operated by spouses through a Limited Liability Company--that is not the case--this law does not apply to LLC's unless they are located in a community property state. If so, the rules are addressed at Rev. Proc. 2002-69.

From a practical point of view you only need to file your business activity in your personal Form 1040 as either a Schedule C or Schedule F activity and the election is made. More details on the election can be found by clicking on the title above.

Please feel free to let us know if you have questions on this or any other tax topic. Also let us know if there is a topic you would like addressed in a future posting to this blog.

Two more cria this week

2008-07-11T23:26:00.000-07:00

The cria additions for this week were both from client females--Izett for Jim Supple out of Cool, CA and Brandy for Stoneberg Alpacas, LLC out of Hillsboro, OR. For each of these females it was their first delivery and they were text book--not a glitch for either and both are excellent moms.

Izett's little male is out of Sun Tzu, has lovely crimpy fiber and he looks like he will be beige. So far we are calling him Jim as the owner has not yet given us a name. As our friends at Snowy River Alpacas can share with you--those "temporary" names can stick with them as we all still call Shadow by the name of Parker as they took too long to come up with an official name. His blood draw was done as Parker, his microchip, for just about all those early cria activities he was called Parker. If we aren't careful this little guy Jim could be in the show ring still being called Jim.

Brandy was bred to Pacific Crest Accoyo Paul Revere and her male cria is medium fawn. This photo taken by Doc Hunter of his granddaughter, Belle, holding Firecracker was just too cute to pass posting. Belle was helping while her grandfather drew Firecracker's blood for his IgG and DNA tests as well as while he was implanting his microchip. What a great little helper. Belle is planning to be a veterinarian like her grandfather--she is already in training.

Wilson Cria Number Two is a Girl

2008-07-02T23:29:00.000-07:00

On June 30th at 12:32 pm Jasmine layed down in front of us and presented us with a beautiful baby girl--as you can see from the photo her cria is just a much smaller version of herself. Carrie Hull of Coarse Broads came up with the perfect name for her while she was sorting Jasmine's fiber--Carrie thought her fiber reminded her of Cherry Garcia. Now considering that Cherry Garcia is one of my favorite things--the name was perfect. Cherry was up and nursing within 35 minutes and trying out her running legs within an hour.

Each of Wilson's cria demonstrate a little bit of him--his stance, his interest in everything, his overall presence. We still miss him--but it is nice to have a part of him in our pastures. Two more of his cria are scheduled--one next month out of Autumn Sunshine and one in October out of Bo Jangles.

Cria Season Has Begun at Tucker Creek

2008-06-26T01:15:00.000-07:00

To say that cria season is one of my favorite times of the year is like saying that dark chocolate is just another food group.

This year has started off with three wonderful additions--each with their own story. Each year we select a theme for naming these little critters and this year we are naming them after different types of candy (unfortunately not all of them are dark chocolate--but they are still really fun names).

The first one arrived on June 2nd and what a moose--22.2 pounds at birth. She is a beautiful medium fawn out of our matriarch, Queen Amidala, and Sun Tzu. The crimp on this little one is absolutely gorgeous. Sun Tzu's attributes are definitely showing up on this very controlling cria (just like her mother). Seemed only appropriate that one of them be called Candy.

Then on June 12th we got the first of only four cria bred from our beloved Wilson who died this past February. Wilson was only two and a half when he died and was one of the most precocious mischievous gorgeous males born on our property. He was co-owned with Rising Moon Alpacas in Preston, NV. 2007 was his first breeding season and we have been waiting patiently for his offspring to arrive. His first was out of Coastal Moon's Katrina (a medium silver grey). He is dark brown with a wonderful white and black face. He may be younger and smaller than Candy--but he is every bit his father's son and presents some stiff competition when it is time for cria races. Seemed only appropriate to name him after this sire--this is Tucker Creek's Wilson, Jr.

The most recent arrival is another Sun Tzu progeny out of our other matriarch, Tequila's Marcella, (she and Amidala don't fight--they just rule autonomously). He is the first true black born on the farm--should be exciting to see if he stays that color. His name is Sugar Daddy. Could this be the black herdsire Hailey Parker (Snowy River Alpacas) has been searching for?

The next one scheduled to arrive is Tucker Creek's Brandy owned by Stoneberg Alpacas. Eric is scheduled to be here on Monday to help us with nails and topknot trimming--maybe she is waiting until he arrives to deliver her Paul Revere female cria. We will keep you posted.

Fiber Sorting Seminar & Shearing

2008-06-24T20:45:00.000-07:00

The Fiber Sorting Seminar was scheduled for Saturday, June 7th. Carrie Hull, one of the Coarse Broads, arrived on Friday afternoon and immediately started to help us plan the best flow for the seminar and our shearing which was to occur on the two days following the seminar. Participation for the seminar was well received and several decided to enroll in the classes Carrie and her partner, Robyn Kuhl, present in Idaho.

Probably the most telling comment as to the success of the weekend was after it was over, David and I scheduled Carrie for next year's shearing weekend. Her seminar will be an annual event and her services were what we have been looking for since we finished our first shearing in 2004.

Here is what Carrie accomplished in a very short amount of time (certainly when compared to what I would have been fretting about). When she arrived on Friday evening we had fiber in 44 bags from prior shearing days. By the time she left on Tuesday morning she had presented a full-day seminar on Saturday; starting sorting the fiber in the bags Sunday morning until the shearing crew arrived; sorted all the fiber shorn on Sunday; sorted the remainder of the shearing completed on Monday and then finished sorting the remainder of the fiber in the bags--all before she left. The end result is bags of fiber ready to go (no more processing on our end). To say that our first shearing with fiber sorting was a success is definitely an understatement. We also made notes on what could be done differently next year to make the process even more productive in 2009.

If you want to learn more about the services of a certified sorter or want more details on the North American Alpaca Fiber Producers Cooperative follow the links below:

http://www.fibersorting.com/

http://www.naafp.us/

We are happy to be members of the cooperative and will be soon be adding the Certified Sorted logo to our website.

IRS Increases Mileage Rates through Dec. 31, 2008

2008-06-24T18:06:00.000-07:00

In case you have not yet heard the good news (if it can be called that), today the IRS announced an increase of 8¢ in the optional standard mileage rate for the remainder of 2008. As you may recall this is normally adjusted annually and announced in the fall for the following tax year. Guess they are taking pity on us due to the gas prices painfully being felt all across the country.

In summary, starting July 1, the following rates will apply:

Business Mileage 58.5¢ per mile
Medical Mileage 27¢ per mile
Moving Expense Mileage 27¢ per mile

Unfortunately, an increase in the standard mileage rate for charitable mileage was not increased as it is set by statute and not by the IRS. It remains at 14¢ per mile.

If you want more details, or are having difficulty falling asleep, the full text related to optional mileage rates can be found in Rev. Proc. 2007-70. Here is the link.

http://www.irs.gov/pub/irs-drop/rp-07-70.pdf

Suffice to say, the above increase is appreciated!

Taxes, Audits and Business Plans at National Conference

2008-04-29T15:05:00.000-07:00

WOW, less than five years ago when we started raising alpacas I never would have expected that I would be speaking at the National Conference--but I am. Check out the list of talented speakers--there is a an impressive schedule of timely and productive topics to be shared at the conference.

Workshops and Seminars at the 2008 AOBA National Conference

The workshops are scheduled for Wednesday and each of the seminars are scheduled to be presented twice on either Thursday or Saturday--so you should be able to catch all the topics that interest you.

Look forward to seeing you there.

Where's My Refund

2008-04-29T14:42:00.000-07:00

April 15th has come and gone and most of the country has filed their taxes (not us of course, as any good retired CPA, I filed an extension). So now that you are sitting there waiting for your refund, when is it going to show up? The link below will get you all the details on tracking down your refund.

Where's My Refund?

But this year, we are waiting for more than just our refund. We are also waiting for our Economic Stimulus Payments. Check out the link below for the details on payments scheduled for returns filed by April 15th as well as a series of FAQs about the payments.

Economic Stimulus Payments on the Way

Now lets all get out there and spend those refund and economic stimulus payment dollars on more alpacas. If we are going to stimulate the economy, lets start with our own industry.

See you at Nationals!

Coarse Broads-Fiber Sorting for Maximum Profit Seminar

2008-04-29T01:38:00.001-07:00

Now there are a variety of locations throughout the country to take advantage of the education being made available by Carrie Hull and Robyn Kuhl.

May 11th, 2008 Seminar to be presented: Fiber Sorting for Maximum Profit
Hosted by Snowy River Alpacas - Location: Colfax, CA
Contact: Hailey Parker 530-346-6885 or 916-216-1043 snowyriver1@earthlink.net

June 7th, 2008 Seminar to be presented: Fiber Sorting for Maximum Profit.
Hosted by Alpacas at Tucker Creek - Location: Astoria, OR
Contact: Peggy Stevens 877-915-0522 or 503-325-5725 info@alpacadigest.com

July 19th & 20th, 2008 Seminars to be presented: Fiber Sorting for Maximum Profit and Profitable Fiber Herds. Hosted by: Longwoods Alpaca Farm - Location: Cumberland, ME Contact: Pamela Harwood 207-829-4159 pdh@longwoodsalpacas.com

July 26th, 2008 8:15 Registration Seminars to be presented: Fiber Sorting for Maximum Profit and Profitable Fiber Herds. Hosted by: Middlecreek Meadows Alpacas, Robert & Wendy Kreider - Location : Middleburg Fire Hall in Middleburg, PA
Contact Wendy at : 570-374-2447 kreidercrew@peoplepc.com

August 2nd, 2008 Tampa FL. Seminars TBA - Hosted by FABA.
Contact Jane Dula at 321-273-0471

Here is a quote from a recent email I received sharing the benefits of using the services of a certified sorter.

"One breeder told me after I sorted 3 years worth of fleece for her that she learned more about her herd and making breeding decisions with me sorting her fiber than she has in several years of showing the animals."

I'm not telling you to quit going to shows--I'm just sharing with you that there are lots of pieces to the puzzle and the more information we have the better able we will be to make quality breeding decisions as well as maximizing the value of the fiber they produce.

Check out the list above and schedule to attend one that fits your schedule or geographic location. In the big scope of things this service is worth so much more than the charge per fleece. Just knowing that by the end of shearing day all of the fiber is ready to go with recommendations for its highest and best use along with details we can use for future breeding decisions--wish we had known about this years ago. I'll be going to see Robyn in action at Snowy River Alpacas in May and Carrie will be at our farm in June. Don't miss this opportunity.

Oregon State University 2008 Camelid Neonatal Conference

2008-03-05T20:41:00.000-08:00

This is one of my two favorite seminars of the year. This event and the Camelid Symposium presented at the University of California at Davis in January of each year are the premier opportunities for us to get current information presented by the best camelid specialists in the country.

The 2008 Camelid Neonatal Conference will be presented at Oregon State University in Corvallis, Oregon, on Saturday, April 26th. This conference is a hands-on opportunity to learn how to give shots, tube feed a cria, body score your animals, correct a dystocia and a great opportunity to ask questions--and those are just the highlights. A portion of the day will include classroom presentations by Dr. Christopher Cebra and Dr. Pat Long and the text for the conference will be the most used book on our farm "Llama and Alpaca Neonatal Care" written by Drs. Smith, Timm and Long. This book is the first place we go if we have a question regarding a cria or mom. We have a copy in the barn, in the store, in our office, upstairs and downstairs and have even been known to travel with one during birthing season.

You get all the above and lunch too! Here is the registration form. Feel free to copy and paste it into an email and send it to bernadette.stang@oregonstate.edu or fax it to 541-737-6879. Don't miss this opportunity as it may not happen again until next year--though I keep trying to encourage them to schedule them more often.

Tax Seminar at Northwest Alpacas

2008-02-28T17:59:00.000-08:00

On Sunday, March 16th, Peggy will be participating in another tax seminar with Fred Kraft at the Alpaca Institute at Northwest Alpacas in Hillsboro, OR. This session will be the first time she will have an opportunity to present the seminar reflecting the changes brought about by the new tax law President Bush signed on February 13th. As always, the session will also include valuable input for creating a business plan.

The new law includes a large increase in Section 179 limitations starting in 2008 (from $128,000 to $250,000 with a ceiling of $800,000) as well as the return of the 50% Bonus Depreciation deduction. So, even if you have attended a seminar before, contact either Fred or Peggy to reserve a seat as this is a great opportunity to learn how the changes may impact your tax position.

Open House and Tax Seminar at Alpaca Woods Ranch

2008-02-12T18:31:00.000-08:00

For those of you who have been wanting to come to one of our seminars but didn't want to travel all the way across the country to Oregon, here is your chance. Mark March 29th on your calendars as the 2nd Annual Open House at Alpaca Woods Ranch. Ronnie Nagimesi has been one of our clients and great friends for two years and has put a great deal of time and effort into taking the "woods" part of Alpaca Woods Ranch and turning it into pasture for his wonderful critters. It has been a year since the last open house and there have been plenty of changes in that time—more pastures, new shelters and, of course, the best part—new crias. Refreshments will be served. There is no charge but we would appreciate an RSVP just for planning purposes.

Peggy will be the featured speaker addressing the tax consequences of alpaca ownership. The session will cover the great opportunities this industry has to offer as well as some of the pitfalls to avoid. Here is a brief outline:

Summary of Economic Stimulus Act of 2008 and its impact on you

What is Section 179 and how it impacts the alpaca industry

How Section 179 works; comparing it with regular depreciation

The difference between a Hobby Farm and your farm

What is the IRS looking for when they look at your return

Types of Income and Expenses that should appear on your tax returns

The importance of Business Plans

Question and Answer Session – all the issues that matter to you

The Open House will be from Noon to 5:00 p.m. The tax presentation will be held from 1:00 – 3:00 p.m. Please advise if you will be able to join us on March 29th by either phoning or emailing Ronnie at (770) 972-1247 (mabinda@excite.com), or Peggy at 877-915-0522 (peggy@alpacadigest.com). Here is a Google link for directions. Just add your address in front of Ronnie's and click on the Search button.

Coarse Broads Coming to Alpacas at Tucker Creek

2008-02-01T18:31:00.000-08:00

Shearing day is always an exciting time. It represents the end of another year's growth and provides the opportunity to view the quality of each animal's fiber as it is shorn. Sometimes it represents the first time we get to view the true color of last year's cria. How does the fiber compare with each of their studly dads and gorgeous dams. As satisfying as that process may be fiber is probably one of the areas that has consistently caused the most consternation at our farm--how to skirt it (as any of you who know me at all realize--I can be very annul--there is not enough time in the day for me to skirt a fleece and be happy with it), what to make out of it, what mill to send it to. The list goes on--but the fiber goes nowhere. Not to say that we have never processed any of our fiber--we just haven't been thrilled with the end result.

That is all part of the past. This shearing season Carrie Hull from Coarse Broads will be presenting a seminar at our farm the day before shearing begins. Coarse Broads business focuses on educating North American alpaca producers about profit opportunities and the various uses for fiber in an effort to prepare us for the expanding and viable American market that is available today. On Saturday, June 7th we will be presenting a day long seminar at our farm in preparation for shearing on Sunday and Monday, June 8th and 9th respectively. This seminar will be open to our clients only. The focus of the three days will be to give us all a heads up on the potential available to each of our farms.

When the email from Carrie and her business partner, Robyn Kohl, appeared in my inbox on January 12th I could not dial their number fast enough. The idea of having all of our fiber sorted and ready to be sent off for its intended purpose by the end of shearing day was too good to pass up. Here is an excerpt from their site--when you read this you will understand why I found their approach so appealing:

The benefits to the producer--What the producer receives with sorting services:

Yearly harvest of fiber sorted into grades by color and length.

Individual Sort record on each animal with data that includes the weight of each fleece by body area, grade of each area, comments on luster/brightness, density, and uniformity of crimp, test for tenderness, and sorter comments on the fiber. The individual records are useful in marketing, breeding and general management decision by the producer.

Sort Summary for the entire clip. The summary provides information on the amount of fiber in each grade, color, and length category. This enables the producer to make manufacturing decision for their clip and allows them to track their farms productivity and average fleece weight per alpaca.

Increase in usable fiber: Utilizing the Certified Sorted Method™ reduces the amount of fiber that ends up in the garden, the burn pile, or trash bin. When we first started sorting, most producers were throwing away at least one large bag of fiber per animal. With good shearing, collection and sorting, typical waste per alpaca is less than 8 oz. per animal!

Increase in potential profit: Producers increase profit in several ways.
*More useable fleece per animal
*Superior products created from sorted fiber commands higher prices and repeat customers
*Sorted fiber has less loss during production. Some mills have commented that the loss from processing is 10-15% less than average.
*The opportunity to become NAAFP Coop member, having access to reduced processing costs, access to retail outlets, and marketing.
Suggested uses for each grade of fiber. The sorter can assist the producer in recognizing fiber goals, then sort fiber in a manner that best supports those goals. Appropriate uses for each grade will be discussed as well as general processing information and resources to assist the fiber producer. The average grade of the fiber producer's herd can be calculated, giving them feedback on goals they may have already set.

Assistance with herd management: Because the sorting process is very thorough, external parasites, skin conditions, stress on the animal which create fiber breaks, etc... are identified and can be address.

At the end of the day, shearing and sorting is completed and a summary of the yearly clip is compiled.

Shearing is over! There is no need to skirt the fiber at a later date. Total weights are recorded by grade, color and method of processing. Your clip is ready for processing! Data available to plan for fiber use and management issues.

When the fiber producer understands what they receive with sorting, they can recognize the tremendous benefit sorting has to offer and how economical it is for them. Usually the sale of the products from the leg/chest/belly will pay for the sorting itself. Other interesting benefits have been reported, including the increased sales of breeding stock due to the ability to answer that age old question,"What do you do with the fiber?"

We look forward to sharing the weekend with all our clients and finding out the value of having our fiber sorted by a certified sorter. The incredible animals in our pastures represent a wonderful living for all of us. We owe it to ourselves and our industry to do everything we can to increase the value of the end product they provide us.

Year End Planning

2007-12-23T18:17:00.000-08:00

The end of the year is upon us--don't know if it is just a sign of getting old--but I just don't know how the year went by so fast. As many of you know we just experienced one of the worst storms to ever hit the Oregon coast. It took a while for our electric, telephone and Internet services to be returned to normal; but the alpacas never missed a beat. We went down to check on them several times during the storm and they were just as contented as could be--with torential rains and 100 mile per hour winds howling outside the barn--they are amazing critters.

Part of what comes with the end of the year is our innate need to plan. What do we need to do before year end? Will we buy alpacas or other business equipment before year end or should we do it next year? Several links appear below to help you look at several different scenarios. Two of them are sample business plan spreadsheets--both with an initial purchase of six female alpacas averaging $15,000 a piece--one includes a demonstration of buying all breedings the other includes the purchase of two herdsires.

6 Bred Females With No Herdsire

6 Bred Females With 2 Herdsires

The third pdf is a listing of business plan inputs for various alpaca related expenses.

List of Business Plan Inputs

As you review these reports you will note a very conservative approach. No forms of income are included other than the sale of alpacas and those are reflected at very conservative prices. As you put this type of analysis together for your farm or proposed farm keep in mind what you feel confident your various forms of income will be. Many times over the years as we have been asked by new farms to help them develop their business plans and we find that many give us revenue from agistment, transport, fiber sales, consignment sales, etc. all before they have even started in the business. If you are planning to provide transport services and are an individual who enjoys driving cross country then this alternative has merit. But, if you hate to drive, why include transport services in your business plan? Be realistic in what you are planning. A business plan changes over time. It is not meant to be a static document. It is a guide to your future. When things change your business plan will need to change.

The percentage we use for birth rates (80%) is quite low because we want to plan on the low side--what if you have some females who don't get pregnant (it happens)--there are times when a cria may die (sad but true). There are years where your percentage of males may be greater than 50%--our second year we had 15 males out of 21 births. That didn't fit with our business plan; but all those boys have been sold. It just meant we had to look at our planning in a different light.

As you put your business plan together review the 97 questions the IRS presents in their Market Segment Specialization Program entitled: IRC Section 183: Farm Hobby Losses with Cattle Operations and Horse Activities (despite the name it would be the guideline for any audit involving alpaca breeding operations). The list appears in Appendix D. These are all questions the IRS is going to ask you--if they are already answered in your business plan you will be ahead of the game.

http://www.irs.gov/pub/irs-mssp/a1farmls.pdf

Give a holler if you have questions. David and I wish you the very best as we begin the countdown to 2008 and would like to thank all of our friends, clients and vendors for their part in making this a wonderful 2007.

Tax Time is Approaching . . . quickly

2007-11-28T07:33:00.000-08:00

As I prepare for the year end Alpaca Business and Tax Planning seminar being presented jointly with Northwest Alpacas on Friday a couple of IRS links looked very worthy of sharing on the blog.

The first one is entitlted "Tips for Choosing a Tax Preparer".

The individual you select to prepare your return is a very important decision but no matter how qualified that individual may be remember the contents of the return are your responsibility! If you don't know where to turn to find a qualified farm-friendly accountant contact another local farm and ask if they are pleased with their accountant/preparer, check with your local AOBA affiliate, or your state society for CPAs.

The second one addresses the 2008 Standard Mileage Rate--50.5 cents per mile for business miles. Follow the link and you can review a summary of the mileage rates for medical, moving and charitable purposes.

There is still time to sign up for the tax seminar on Friday--just follow the link above. Along with the tax and business planning presentation it is a fun exchange of questions and experiences with participants enrolled from all parts of the country.

Trying to Catch up . . .

2007-11-08T05:58:00.000-08:00

We have been very busy and obviously have not updated the blog on a regular basis. Guess we need to learn to post shorter messages.

The big news in the camelid industry right now is a virus that has been showing up throughout the country. Our farm has had no incidence to date but we know farms who have. Luckily all their critters are fine. There is no definitive diagnosis at this point but we wanted to share a link from the International Camelid Institute http://www.icinfo.org/index.html you might want to review and add to your Favorites. The ICI was founded by Dr. David Anderson at The Ohio State University (Peggy's alma mater) in 2001 and is an information repository, veterinarians, owners, academicians, regulatory agencies and others can access and obtain essential information for everyday situations from research.

Will try to do better on updates--several are in the edit stage right now--but wanted to get this quick message off about a great resource whether it be for critical virus information or daily care issues.

We hope all your critters are happily grazing in their pastures and you are having a great autumn in your area of the country.