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.
