A very sad day at Tucker Creek

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

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

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

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

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

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 . . .

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

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

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.

1. Three characteristics are used by the IRS to determine the relationship between businesses and workers: Behavioral Control, Financial Control, and the Type of Relationship.
2. 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.
3. 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.
4. The Type of Relationship factor relates to how the workers and the business owner perceive their relationship.
5. 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.
6. 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.
7. 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.
8. Workers can avoid higher tax bills and lost benefits if they know their proper status.
9. 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.
10. 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

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

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

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

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?????

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 Coastal 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

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?

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

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

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

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

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.

1. All females sold include one year's free agistment.
2. 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).
3. 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.
4. Small farm feel—large farm experience. In operation since 2003. To date we have had 108 cria at Alpacas at Tucker Creek.
5. Ideal Alpaca Community member—purchase of any of our animals will allow your entire herd the benefits membership allows.
6. Studmaster™breedings—reduced fees for drivebys and repeat customers.
7. All adult females are sold bred along with a breeding for the following year.
8. Discounts for multiple purchases and repeat buyers.
9. 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%.
10. Halter and lead ropes with each purchase.
11. 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.
12. 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

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

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

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

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

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.

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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

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

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

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

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

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.