Happy Thanksgiving

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

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

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.