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.