One of the many added advantages to raising alpacas is the tax benefits. Below is some basic information to get you started.

CODE SECTION 179

Most equipment can be depreciated over time or expensed immediately.  Most moveable assets qualify.
To be eligible for such deductions, the asset has to be used at least 50% for business in the first year of purchase. Both used and new asset’s qualify. Of course to prevent people from taking advantage of the section 179, there is what they call a “phase out” of the allowable deductions if too much qualifying property is purchased during the tax year. For every dollar of qualifying property purchased during the tax year that goes over the amounts established in section 179, the deduction is reduced by a dollar: but not below zero.
The “phase out” has gone up over the years from $400,000 in 2003 to now $430,000 in 2006.
Just about everything that has to do with alpaca faming including purchasing your animals can be used partially or fully as a tax deduction.  For a list of qualifying property, check out the QuickFinder reference book for details.

Also, when having property for farming, a deduction to your property tax is given after the second year.  Check your local Agricultural Dept. for more details.

Contact your local tax professional for all the details and see what tax advantages apply to you and where you live.

AOBA (Alpaca Owners and Breeders Association) is also a wonderful site for a much more detailed description of tax benefits in owning and raising alpacas.