Year End Planning

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

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 . . .

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.

Way behind on telling you about babies!

It has been very busy on the farm and we suddenly realized the last seven cria had not yet been officially presented to the world via the blog--so here they are.




August 18 - Khani (named after Khani Cole one of our favorite female vocalists) out of Tucker Creek's Chandra and Hemingway's Bogart. She may be a light fawn or beige--only time will tell--but she is dense and crimpy and conformationally perfect.




August 19 - Lollipop (named after the late 50's hit of the same name) out of Tucker Creek's Franchesca and MFI Peruvian Glacial Storm. We realized she is, much to our dismay, our only Glacial Storm cria this year as all the other Glacial Storm bred females sold last year. Not that we are complaining! She is just as gorgeous as her cousin--Chandra and Franchesca are 1/2 sisters out of our incredibly fine Karoline (now owned by Alpaca Woods Ranch in Snellville, GA). Karoline had a male this year out of MFI Peruvian Impact--Alpaca Wood's Augustus--if you are looking for a future herdsire--he should be worthy of your time and interest.

September 9 - a mother and daughter delivery duo - Faiks' Athena and Faiks' Elana presented us with a male, Tucker Creek's Creedence (medium fawn), and a female, Tucker Creek's Clearwater (white), each sired by Hemingway's Bogart. We had been hoping for a trio for the family as Athena's other daughter, Victoria, was also due at the same time--but the R component of CCR did not appear until several days later.

September 14 - the arrival of Tucker Creek's Revival to finish off the three memorable names of the 60's group by the same names commonly referred to as CCR. He is the gorgeous result of a breeding between Tucker Creek's Victoria and EC Sun Tzu.

September 19 - Tucker Creek's Jewell out of El Bello's Eloisa and EC Sun Tzu--what a gorgeous little doll. To date Eloisa had only given us males--Tucker Creek's Spenser from last year is still on our annual watch list. Only one or two males make the list each year. So far he has not disappointed us. And we are certainly not disappointed with the results of this breeding!

And before leaving the pasture we found that Cazie's Octavia was delivering the first cria born to Rising Moon Alpacas out of Preston, NV. Another gorgeous EC Sun Tzu male named Rising Moon Eclipse. We are thrilled to add them to our group of affiliate farms and look forward to many years of mutual alpaca fun and success.

Our breeding season is almost over. Only three more cria to come--all belonging to clients--and all out of Sun Tzu. To say that we have been thrilled with the results of our first breeding season with Sun Tzu would be an incredible understatement. He is doing a magnificent job with crias on the ground ranging in color from white to black--every single one displaying his dense and crimpy fiber as well as his friendly dispostion. Many thanks to Mike Safley at Northwest Alpacas for his personal selection of this outstanding herdsire standing stud exclusively at Alpacas at Tucker Creek. Limited breedings available for 2008.

Don't forget National Alpaca Farm Days are next weekend. Take part in whatever way you can. These unique critters have afforded us a wonderful lifestyle and the industry has only scratched the surface. If you are not already involved--check them out--there is probably a farm near you!

National Alpaca Farm Days - September 29th and 30th

Sun Tzu is at the fence to meet every visitor as they come through the front gate! And he will be anticipating your visit next weekend as Alpacas at Tucker Creek is happy to be one of the many farms throughout the country recognizing National Alpaca Farm Days. It was a program designed by the Alpaca Owners and Breeders Association to increase public awareness regarding these wonderful animals and the satisfying and rewarding lifestyle they afford.

If it is not convenient for you to drop by our farm please check the list and find an alpaca farm or ranch near you. http://www.alpacafarmday.com/farmlocator/index.asp

Hours will run from 9:00 AM to 4:00 PM Saturday and Sunday. Please come to enjoy refreshments, demonstrations, and lots of alpacas all in the beauty surrounding the Oregon coast. There are lots of babies to see and you might even get to see a birth--Sun Tzu still has more babies scheduled to arrive any day. Dave Drury will be performing on acoustic guitar Saturday. There will be many prizes including 50% ownership in one of our incredible junior herdsires!!!

Sun Tzu and the rest of the critters and staff at Alpacas at Tucker Creek look forward to seeing you!

Alpamayo Genes galore

Our two most recent crias were sired from 1/2 brothers each of whom were sired by Canada's premier herdsire Jolimont 2 Peruvian Alpamayo IMPB98--our incredible male, Sun Tzu, and his 1/2 brother, MMR Laredo. Each of these gorgeous cria arrived while we were out of town--don't even want to think how many times we have changed our plans waiting for a cria to be born.

Tucker Creek's Jumpin' Jack Flash was born on Friday, August 3rd, out of our sweetheart Iomi and Sun Tzu. He is a beautiful light fawn with energy to spare. Sun Tzu's density and crimp are already demonstrated in his young fleece.

Tucker Creek's Amor was born Monday, August 6th, and is a gorgeous dark female out of true black Chilean, Mora, and MMR Laredo. Just like his brother, Laredo does a wonderful job producing color. Only time will tell if she is going to end up a bay black or true black as her ears and lower legs fade to black. Her IgG was at the top of the scale as soon as they started the process and she is a very active member of the herd.

Ten more babies to go . . . and our first baby of the year, Clapton, is almost four months old and over 60 pounds . . . time to be weaned . . . just in time to go to his new home in Georgia, Alpaca Woods Ranch. Time really goes by fast when you measure it in terms of birthing, weaning and breeding.

2007 Section 179 Increase

Just a heads up . . . The Small Business and Work Opportunity Tax Act of 2007 was signed by President Bush on May 25th and one of the sections was good news for alpaca breeders and small businesses in general. The provisions of Section 179 in excess of $100,000 (adjusted annually for inflation) were extended through 2010. Originally the deduction was scheduled to be reduced to $25,000 that year. So the new law extended the higher threshold of Section 179 by one year and increased the 2007 limitation from $112,000 to $125,000. The law also increased the annual phase-out of Section 179 from $450,000 to $500,000.

It's nice when tax legistation is in our favor for a change.

Don't forget to sign up for the tax seminar being presented by Peggy and Fred Kraft at Northwest Alpacas on Friday, November 30th.

http://www.alpacas.com/AlpacaInstitute/CourseDetails_ODS5.aspx

Updates-Cria #9 and Tax Training

The babies are doing great--catchin' some rays and enjoying the sun. Who says alpaca breeding is all work and no play.

The most recent arrival was on Wednesday, July 11th--his arrival greatly destroyed the axiom that crias are born during the daylight hours--how does 2:00 in the morning sound! He goes by the name of Jitterbug--the first cria from Bugaboo and a full Peruvian stud by the name of Trey. Name a color and this little guy probably has it somewhere on his busy little body. A Jitterbug he truly is. Bugaboo came out of a group of animals from Canada and at the age of six had never previously delivered a cria. To say she didn't originally know how to handle the little guy was an understatement--but after a few days with the rest of the moms on the farm she has figured out how to be a mom and she is doing a great job. He has already gained three pounds and his IgG was off the chart. He and Sinatra (shown above) immediately hit it off and have been a team since they first met.

Just a heads up--I am currently scheduled to be teaching another tax class at Northwest Alpacas in Hillsboro, Oregon, on November 30th--the link appears below:
http://www.alpacas.com/AlpacaInstitute/CourseDetails_ODS5.aspx

And don't forget our Summer Sale--Cash terms allow you to buy one alpaca and get the second of equal or lesser value for 1/2 price; all financed rates have been reduced and other discounts are available. Check out the site--select your alpaca or package of choice--the new babies are still coming and it is a great time for you to get some wonderful genetics for your herd at a great price. Don't forget--90 days is the same as cash and we do take credit cards.

Look forward to hearing from you. One of our favorite parts of the alpaca business is farm visits so we want to thank all of you who have dropped by this summer--be sure to stop back so you can see how the babies have grown. If you have never been to the Oregon Coast in the summer--you are in for a treat--come on out and stop by for a visit. Sinatra sends a reminder--Don't forget to bring your shades!

Crias #7 & #8 and a Summer Sale

It has been a very busy time so, unfortunately, we are a tad late in reporting the most recent births.

On June 17th we were very happy to welcome Tucker Creek's McKenzie, a beautiful 17 pound bay black female out of Marcella and our outstanding herdsire, Sun Tzu. She is the first of eight cria we are expecting out of Sun Tzu this year and are most excited as this is his first season. She was certainly everything we had hoped to see. She has dense curly fiber with a very soft handle.

On the 20th Autumn Sunshine delivered an impressive 17 pound pure white baby boy out of Pacific Crest Accoyo Paul Revere. Like all of Paul Revere's cria, Tucker Creek's Nnyrok has very curly dense fiber. He was one our speediest crias to stand and nurse completing the entire process in less than one hour. He is half Accoyo and Full Peruvian--and a second generation Studmaster progeny--should be very fun watching this young male grow up.

As the birthing season continues one truth comes to mind . . . as more crias arrive the more important it becomes to take a really hard look at the herd and make some decisions on what we want it to look like. Who should be included in our foundation herd? What animals do we want to sell? What are the characteristics of the females left to deliver? Considering the severity of the winters on the Oregon Coast what is the ideal size herd in preparation for winter (this is more of personal issue than an alpaca husbandry issue--we prefer fewer critters through the winter). So to that end begins our annual evaluation of our herd which consists of 62 animals as of this writing with 16 more crias due by year end. Ideally we would prefer to go through the winter with a herd closer to 40. Many of the prices on our website have already been reduced--so it is a great time to add some wonderful animals to your herd as our Summer Sale begins now!

Crias #5 and #6 – This is not a perfect science

As I write this I struggle with whether there is a productive purpose to this blog entry. Oh my goodness—the readers might think our program is flawed. Or, it may discourage some from becoming alpaca breeders. Bottom line—the purpose is to demonstrate that this industry is not an exact science. Things don’t always happen according to plan. But doesn’t that also happen in any other business or profession?

Any one who has been involved in the breeding process of any species for any length of time can tell you stories about the one who didn’t make it. Sami D was cria #5 and unfortunately she never got to take a single breath. She would have been the seventh female cria born to Ominaca’s Bo Jangles—she has never had a male cria. Little Sami died in utero most likely from a premature placenta detachment. There were no outward signs. She appeared to be delivering on a timely basis—Saturday, June 9th was right at the 345 day mark. Unfortunately, she and the placenta came out at the same time. She probably died a day or two before delivery. It is very sad—that never changes. Do you get hardened to it? Losing a cria is never an easy thing. But it makes you enjoy the successful deliveries all that much more—and most of them are successful.

Cria #6 appeared at 4:05 pm on June 11th. Jasmine follows the tradition of her dam, Queen Amidala, by having a very text book delivery. Keeping with our musical theme his name is Tucker Creek’s Sinatra. He weighed in at 14.6 pounds and had no problem zeroing in on mom’s milk. By the next morning he was rough and ready for cria races. In case you wondered--we certainly did call him Sinatra for a reason--he has baby blues--though he is not deaf or blind.

There are differing opinions as to whether blue eyed alpacas belong in a breeding program. It would be difficult to establish how many blue eyed alpacas are actually in the US alpaca herd as many breeders may not register them (many non-breeders are not registered) and if they did would they note they had blue eyes. I certainly don't claim to have the answers. Breeders and doctors with endlessly more experience than I don't have a consensus of opinion. But you can find some very good articles which address blue eyed alpacas at the links appearing below and you can form your own opinion:

http://www.alpacagenetics.com/AndyMBlueEyedWhites%20sent.pdf

authored by D. Andrew Merriwether, Ph.D.,

and Ann M. Merriwether, Ph.D

http://www.shagbarkridge.com/info/deaf.html
authored by Philip A March, DVM, MS and David E Anderson, DVM, MS

and Philip Sponenberg mentions blue eyed alpacas in his article http://www.alpacas.com/AlpacaLibrary/Articles/JigglingGenes.aspx.

If you have any comments, opinions or questions, please feel free to let us know.

#4 Arrives at 5:30 pm

Baby number 4 delivered at 5:30 pm . . . this year is definitely destroying the typical alpaca delivery time of between 10:00 am and 2:00 pm. Sorpressa presented us with the second cria in a row to deliver late in the day.

But now we have Peggy Sue and what a beauty she is. Sorpressa is a gorgeous medium brown out of Faiks’ Firenza and MFI Peruvian Glacial Storm. Her 2006 breeding to MSA Peruvian Cannonero has resulted in a dense, curly, light fawn female with a real independent attitude. She weighed in at 16.8 pounds and was up and running in no time at all.

And to add to the excitement of the arrival of this beautiful little girl . . . we finally have a Cannonero cria we get to keep. In the past the moms have all sold before we even got a chance to see their cute little noses. We finally had to break down and buy one back from a client just to have one on the property. It seemed a real shame to have this incredible stud and not a single progeny on the property . . . but not any more.

Cannonero was awarded male color champion at the Redmond AWE show in 2003. He is out of MSA Sorpresa and PCA Spartacus with Hemingway on both sides of his lineage. His lineage also includes Pperuvian Camilio and Peruvian Navidad. He displays dense, super soft handling fleece that parts like a book in rows of shiny, crimped fiber. He is bold, square and covered to the ground.

Considering the density and crimp on both sides of her lineage we look forward to a gorgeous Peggy Sue.

Tucker Creek's Revolution is Cria #3 for 2007

It was already after six in the evening and Amidala was acting a tad fussy—for most late term moms I would just consider it a part of being a late term alpaca. But not when it comes to Queen Amidala, AOO. She had already had a late delivery in 2005 at 8:15 in the evening. So when she started acting fussy there was enough past history to warrant preparing for the new arrival regardless of what time it was. And less than an hour later Tucker Creek’s Revolution was on the ground.

He is an energetic, curious, curly fleeced little guy weighing in at 18.6 pounds. So far his fiber appears fawn from the tips of his ears and down his back and then fades to white as it goes down his legs. Only time will tell what color he will end up--we have had others who when born appeared fawn or beige only to turn perfectly white within a few months.

Rev's dam was awarded 1st Place at the Heart of the Valley Alpaca Show & Sale - WABA 2003 and 2nd Place Western Alpaca Extravaganza – CABA 2002. She is a very beautiful rose grey with a great disposition and loves being a mom. His sire is Pacific Crest Accoyo Paul Revere. Paul Revere's parents were hand picked by Greg Mecklam with the guidance of Don Julio. His cria display incredible crimp, density and conformation. Limited breedings with Paul Revere are available for 2007.

Keep stopping back as we will update the blog with each new arrival and/or whenever a topic of general interest sparks my need to share.

Hope you are all having a wonderful and safe Memorial weekend.

The Babies Are Arriving

Winter is very slowly fading into Spring on the Oregon Coast and our first crias are on the ground.

The first arrival is Tucker Creek's Clapton, a handsome offspring of MSA Peruvian Brunello and Querida . . . he is the culmination of Hemingway, Accoyo Dracula, Accoyo Santino and Peruvian Victor . . . he is strong and already testing his male prowess on the females in his pasture . . . truly a stud at heart.

Mother's Day morning we were presented with a beautiful little girl out of Pacific Crest Accoyo Paul Revere and Faik's Destiny. In following this year's theme of naming our cria after famous musicians and groups it was only too obvious what her name would be . . . Destiny's Child . . . DC for short. She is healthy and was up and running within hours of delivery. We have been thrilled with the fiber on our Paul Revere crias . . . and Destiny's offspring from 2004 was just awarded Fawn Reserve Color Champion at the California Classic in Pleasanton. So we are very excited at what the future may hold for DC.

We will keep you posted as our babies arrive . . . come on out and see them for yourself . . . watching cria races is a great way to end the day.

Snowy River Alpacas at California Classic

Pictures certainly tell this story . . . and we are thrilled. Tucker Creek's Ranger was awarded Fawn Color Reserve Champion, Tucker Creek's Shadow was awarded Dark Brown Color Reserve Champion and Tucker Creek's El Diablo and Tucker Creek's Steele each came in third in Fawn and Grey Color Classes respectively at the California Classic in Alameda last weekend. The successes demonstrated from the first two shows in Snowy River Alpacas' show career certainly demonstrate the value in Studmaster breedings. The sires to these four males are MSA Hemingway's Tequila, MFI Peruvian Glacial Storm, Pacific Crest Accoyo Paul Revere and MFI Peruvian Glacial Storm respectively. You can schedule your breedings with Ranger, Shadow or El Diablo by contacting Hailey Parker at snowyriver1@earthlink.net or by phone 916-216-1043.

DO I DEDUCT OR NOT? Generally the ANSWER IS DEDUCT!

Now that tax season is basically over . . . except for those who have filed an extension . . . it seems appropriate to address a topic which shows up in my inbox throughout the year as well as during tax season . . . the question of deducting alpaca related expenses during the first few years of operation.

The email generally goes something like this "I have been doing alpacas for a year or two but have never claimed any of the alpaca related expenses as I was told I could not until I sold something . . . is this true?" The simple and most often the appropriate answer is "deduct".

The IRS addresses this issue in a variety of places . . . the link above goes to Publication 535, Page 5 . . .

Presumption of profit. An activity is presumed carried on for profit if it produced a profit in at least 3 of the last 5 tax years, including the current year. Activities that consist primarily of breeding, training, showing, or racing horses are presumed carried on for profit if they produced a profit in at least 2 of the last 7 tax years, including the current year.

That same publication discusses not-for-profit activities and some of the factors the IRS looks at when they determine whether a business has a profit motive or not.

You can still go back and amend your returns if you feel it appropriate for your particular tax situation. An in depth conversation with your tax preparer should be your next step or begin looking for a new preparer. Not all preparers or accountants are farm friendly . . . even those who are not should be able to assist you in making the decisions required to properly reflect the true picture of your farming activities. Bottom line . . . the tax return is your responsibility . . . it is their duty to advise you on the rules . . . but you are ultimately responsible for the content of your return.

Tucker Creek Crias Go to Shows

As many of you know Alpacas at Tucker Creek has chosen not to go to shows. Whether that is a good or a bad decision for your farm only you can decide--it is the path we have chosen for us. But don't let it be thought we don't see the value in the show process. And to that end is the subject of our latest blog.

We are happy to annouce the results of the first Alpacas at Tucker Creek offspring to go to show. Both Snowy River Alpacas, Colfax, CA and BrushWalker Alpacas of Geneseo, IL went to shows this weekend. The show results are from the Alpaca Western Extravaganza in Reno, NV and IAOBA Alpaca Riverfest in East Peoria, IL respectively. To say we are proud would be an understatement.

At AWE Snowy River Alpacas - Hailey & Ric Parker had the following results:

Tucker Creek's Ranger (out of Studmaster MSA Hemingway's Tequila) - Medium Fawn Class - 2 year old male - 2nd Place

They had a problem color checking this boy as his fiber was so dense they had difficulty getting the color chart down to his skin . . . what a great problem to have.

Tucker Creek's El Diablo (out of Studmaster Pacific Crest Accoyo Paul Revere) - Medium Fawn Class -
Yearling - 4th Place

Tucker Creek's Shadow (out of Studmaster MFI Peruvian Glacial Storm) - Dark Brown Class - Yearling - 2nd Place

This class was so tight for first and second places the judge spent considerable time comparing the two and after five minutes of side by side comparison decided the first place winner was slightly more dense than Shadow.

At IAOBA Alpaca Riverfest - BrushWalker Alpacas - George & Joanne Brush - had the following results:

Tucker Creek's Warlock (out of Studmaster MFI
Peruvian Glacial Storm) - Medium Brown Class - Yearling - 3rd Place

The judge said that the two above him had denser fleece but that Warlock's fineness was above the whole class.

We could not be happier with the results and effort put forth by these farms. Each of these males is a first generation Studmaster progeny--can you just imagine what will come out of breedings to these wonderful males.

Change in Tax Filing Deadline - April 17th

Wow . . . this one slipped right by me . . . but I wanted to share this once I realized it applied to all of us. Normally, only six states and the District of Columbia are impacted by a holiday known as Emancipation Day. This year that holiday lands on Monday, April 16th. Because of a federal statute enacted decades ago, holidays observed in the District of Columbia have an impact nationwide, not just in D.C. Under recently enacted city legislation, April 16 is a holiday in the District of Columbia. The IRS recently became aware of the intersection of the national filing day and the local observance of the new Emancipation Day holiday after most forms and publications for the current tax filing season went to print. So . . . long story short . . . tax filing day is Tuesday, April 17th. One more day to crunch numbers.

Last Minute Section 179 Clarification

After teaching an alpaca tax class I recently sent out a clarification on some Section 179 related issues . . . thought the blog would be a good place to share them as well. Let's face it . . . taxes are basically boring . . . but a necessary evil. So I am really summarizing the issues here . . . if you have any questions please feel free to contact me or your tax professional. The above link goes to IRS Publication 225 (a must for all of us to have on listed under our "favorites") the discussion on Depreciation and Section 179 begins on Page 35.

If you are unincorporated—filing your alpaca business on Schedule F of your Form 1040—you can carry your unused Section 179 deduction forward for an unlimited number of years. This may or may not be a good plan for you. If all of your income is earned—such as wages or self-employment income—you may lose the benefit of your exemptions and itemized deductions. Be sure you review your return prior to filing to be sure you and your tax professional have had a meeting of the minds on the proper treatment of this issue. If the number on the bottom of page one is zero or materially less than the combined amount of your itemized deductions and exemptions you may want to reconsider the treatment given to the assets purchased during the prior tax year to determine if you would have been better served by depreciating them as opposed to writing them off under Section 179.

As an alternative, you might want to consider depreciating your assets in order to create a net operating loss which can be carried back to generate a refund of taxes paid in prior years. Section 179 cannot be carried back—it can only go forward. But a net operating loss generated currently can go back to release previously paid taxes.

If you are anticipating current year alpaca purchases which could provide Section 179 deductions or have Section 179 deductions rolling over from prior years you can use that information to reduce your withholding or estimated tax payments

If you, like many new breeders, filed returns in the past but did not show any alpaca activity even though you were active because you did not have any income to offset your deductions you can amend those returns and take those deductions, elect the Section 179 deduction on the assets purchased in that year and generate a refund.

The above alternatives could provide you with funds to make your monthly alpaca payments or help to pay for your initial herd all due to reduced taxes currently or refunds generated from prior years.

You don’t want to create a partnership, corporation or LLC until you have discussed the various alternatives with your accountant or tax professional. Staying self-employed until you anticipate having some cash inflow generated from your alpaca business will generally allow you the most flexibility in the use of your Section 179 deductions.

Please be assured you don’t need to become tax specialists—you just need the tools to understand your alternatives. Don't forget April 15th lands on a weekend this year so your taxes will be due Monday, April 16th.

Herd Health Seminar and Directions to OSU Veterinary Hospital

Oregon State University Veterinary Teaching Hospital has added another seminar on Sunday, March 18th, which will concentrate on herd health. Topics will include nutrition, parasite control, vaccinations, herd monitoring, “red flags” signs of disease.

Cost for the Herd Health Seminar:

$100 per person for people already signed up for the Neonatal Seminar

If only attending the Herd Health Seminar:

$225 Standard (includes conference, book and boxed lunch)

$195 Discounted cost for members of WVLF, SWAA, CABA, WABA, EVAA, SOJAA ─ in recognition of those organizations’ past support of the CVM (includes conference, book and boxed lunch)

$145 Additional companion at same address (includes conference and boxed lunch)

Directions:

From I-5 take exit 228 and go west on Route 34 and go 10 miles to Corvallis.

Turn left at 30th street and follow signs to OSU Vet Med.

Or From Route 34, go left at signs for "Eugene and Ocean Beaches."

Get off at first exit for "Philomath and Ocean Beaches."

Take right at 15th street, a left on Western and a right at 30th.

We would like to thank OSU for providing us with such quality education and being there for all of us when we need it the most.

Alpaca Business and Tax Planning Course

Mark your calendars for Friday, February 23rd, for the next Alpaca Business and Tax Planning Course being offered by Northwest Alpacas and Alpacas at Tucker Creek. The course is being presented at NWA's conference center at their beautiful headquarters in Hillsboro, OR. Peggy will be presenting the tax section while Fred Kraft from NWA will be presenting the business planning portion of the course . . . just click on the title above to view the schedule. The above cartoon is just a sample of the many you will see throughout the day . . . don't know where Fred finds them all.

Just a couple of quick reminders for tax planning purposes:

Standard Business Mileage Rate for 2006 - 44.5¢ per mile

Standard Business Mileage Rate for 2007 - 48.5¢ per mile

Section 179 Deduction for 2006 - $108,000 with phaseout beginning at $430,000

Section 179 Deduction for 2007 - $112,000 with phaseout beginning at $450,000

April 15th lands on a Sunday this year . . . so you have until Monday, April 16th to file your taxes.

Hope to see you on the 23rd.

MSA Peruvian Cannonero standing stud at Alpaca Woods Ranch in Georgia

MSA Peruvian Cannonero will be standing stud for the first time in the southeastern US at Alpaca Woods Ranch in Snellville, GA (outside of Atlanta). Ronnie Nagimesi, owner of Alpaca Woods Ranch, knows first hand the value of Cannonero offspring as he has two from the 2006 birthing season--Stella Asta and Taylor Skye--each of them demonstrating wonderful crimp and bundling with excellent conformation and vigor.

Breedings are $2,500 (multiple breeding discounts are available) and the breedings can be at Alpaca Woods Ranch or your farm (if you are within 500 miles of AWR).

Unfortunately, there are currently no Cannonero offspring at Alpacas at Tucker Creek--as soon as a Cannonero bred female gets near delivery she sells. For the 2007 birthing season we have two crias due:

• with Jasmine (we can't sell her, David's mother fell in love with her when she was born--so I guess we will have at least one Cannonero offspring this year) and

• Sorpressa . . . a beautiful female out of Glacial Storm . . . I always have to keep reminding myself this is a business and she is for sale . . . an incredible cria should result from this mating.
  
  

In case you are not familiar with Cannonero . . . follow this link to view his ARI registration certificate:

http://www.alpacanation.com/images/uploads_aricertificates/11285_12150_CannonerosRegistrationCertificate.jpg

and this link for further details:

http://www.alpacanation.com/herdsires/03_viewherdsire.asp?name=12150

. . . a wonderful combination of Peruvian Hemingway, Pperuvian Camilio and Pperuvian Navidad . . . incredible.

We can't wait to see the results this Spring and wish you all a safe, healthy and productive 2007 birthing season.

October Fest goes to the hospital

When you and your vet finally decide a trip to the veterinary hospital is the next step for you and your alpaca . . . don't equate that to a negative experience. You are in for an educational experience. In our case it was a trip to Oregon State University's Lois Bates Acheson Veterinary Teaching Hospital. The staff at this facility is very user-friendly and very qualified when it comes to camelids. They didn't usher us to the waiting room or tell us to come back later in the day. We spent the day with October Fest and her cria, Zafiro, as she was shaved, poked, proded, ultrasounded from every possible angle, scraped and pretty well examined from stem to stern so to speak.

To summarize the reason for the trip . . . even after her delivery of beautiful Zafiro in September she continued to be bloated . . . and the bloating would go from one side to the other and some days both sides.

By the end of the day no one was able to shed any light on her bloating . . . but we did learn quite a few other important bits of information. She has a variety of heart issues. . . none that can be treated . . . none that would be identified as inherited . . . but now we know. She was low on phosphorous . . . so now we are looking at her overall diet and what we can do to improve her overall levels. She has had a limp for years and it does bother her from time to time . . . especially during breeding. They recommended several days of phenylbutazone prior to breeding to reduce any discomfort associated with her lameness. Additionally, glucosamine and other joint supplements were recommended to supplement her current care.

This trip reinforced the need for extensive research in camelids and supports the need for all of us in the industry to contribute and support the work being done by the Alpaca Research Foundation as well as the various colleges around the country such as Oregon State University, Ohio State University, University of California at Davis and others who are making strides toward that end.

So we didn't get the answer we were looking for . . . but we learned a great deal about October Fest . . . every specialist that could possibly have seen her did see her and the bill for the day was way less than one would expect for the caliber of care and the technology that was employed for her examination.

Thank you to Dr. Erica McKenzie, Dr. Laura Waitt and the entire staff at OSU for your continued concern for the patients in your care and the owners who love them.

Oregon State University CVM Camelid Neonatal Seminar

Just click on the title above for the online details and registration form for the upcoming Camelid Neonatal Seminar being offered by Oregon State University. Please share this info with your friends. This is one of the best seminars I have attended since we started breeding alpacas.

Look forward to seeing you there.

Oregon State University CVM Camelid Neonatal Seminar

Just received the email we have been waiting for from Oregon State University . . . they have scheduled the neonatal seminar for Saturday, March 17th . . . here are the details.

From: Hutson, Pat [mailto:Pat.Hutson@oregonstate.edu]
Sent: Friday, January 12, 2007 3:48
Subject: Oregon State University CVM Camelid Neonatal Seminar

Hello all,

Thank you for your patience! I hope you are still interested in attending the camelid neonatal seminar, because the date has finally been set.

Please feel free to share the information with others you think might be interested.

Thank you!
Pat

Pat Hutson
Office of the Dean
College of Veterinary Medicine
Oregon State University
Corvallis, OR 97331
541-737-2268
Fax 541-737-4245

Camelid Neonatal Seminar
Saturday, March 17, 2007
8:30 a.m. – 5:30 p.m.
Magruder Hall
College of Veterinary Medicine
Oregon State University
presented by Dr. Christopher Cebra and others

In South America, up to half of the newborn camelids

die before they reach weaning age. To prevent that from happening

in your herd, the Oregon State University

College of Veterinary Medicine is proud to announce the

resumption of its neonatal clinics for camelid owners.

• State-of-the-Art Lectures
• Hands-on Work
• New Information
• Llama and Alpaca Neonatal Care ─ book by

Drs. Karen Timm and Brad Smith

included in the seminar price

Please contact either Pat or AATC for a registration form (I haven't figured out how to post a form on a blog . . . maybe you can't).

Submit the registration form by fax, email or mail

by February 15, 2007.

Blogger Novice

Thanks to the guys at White Mountain Alpacas another technological marvel is happening . . . we are bloggers. We hope to use this medium for a variety of functions:

1. to share tax and accounting information beneficial to all breeders
2. to keep you up to date on what is happening at Alpacas at Tucker Creek so those of you who have critters here will be a tad more connected with your wonderful animals.
3. to share our calendar of events with you . . . like our 2007 shearing scheduled for May 1st and 2nd . . . it is still in the planning stages . . . but we hope many of you will be able to join us.
4. to post photos as our beautiful crias are born . . . so we can all share in the joy of seeing another generation of Studmaster babies.
5. to provide a forum for many of the questions crossing our desks . . . you might all be interested in the answers.

So, if there is something you would like to know about . . . feel free to send the question our way.

P.S. Rik, Jason & Tom . . . keep track of our blogging while in this toddler stage . . . just a tad of a learning curve for this old CPA.