Alpaca, Livestock and Farm Depreciation - Alpacas of Montana

Alpaca, Livestock and Farm Depreciation

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There are more important changes for alpaca breeders in the recently enacted into tax law. In an effort to stimulate the economy, Congress is giving taxpayers a bonus 50% first-year depreciation write-off for most new capital assets, including single purpose agricultural buildings placed in service for the alpaca farm. (Please note that certain agricultural buildings also qualify for the Section 179 deduction.)

Single purpose agricultural (alpaca livestock) or horticultural structures. A single purpose agricultural (livestock) or horticultural structure is qualifying the property for purposes of the section 179 deduction. For purposes of determining whether a structure is a single purpose agricultural structure, poultry is considered livestock.

Agricultural Structure. 

A single purpose agricultural (livestock) structure is any building or enclosure designed, constructed, and used for both the following purposes:

1. To house, raise, and feed a particular type of livestock, such as alpacas, and its produce.

2. To house the equipment, including any replacements, needed to house, raise or feed livestock."

Section 179 Deduction
IRS Publication 225, "Farmer's Tax Guide", Chapter 8 - Depreciation, Depletion, and Amortization

In effect, this additional write-off means that you can recover more of the cost of an alpaca business asset, such as an alpaca or a barn, in the year you place it in service.


Join the alpaca revolution! Alpaca is a sustainable alternative that is not only good for the earth, but for all of us. Alpaca wool is stronger, softer, more eco-friendly, and offers 85% greater wicking capability than merino wool. It is also hypoallergenic! Learn more about the benefits of alpaca in our Alpaca vs. Wool blog posts, shop our collections and follow us on social media

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