[AlpacaTalk] Re: [Alpaca meat
--- In AlpacaTalk@yahoogro
>
> Depending upon your income bracket, the write off can be
significant. It
> really worked to our benefit the first year and allowed us to buy
our starter
> females without actually putting out any money we wouldn't have
already paid
> for taxes that year. So whatever they produce at this point,
minus their
> expenses, is profit. Pretty good deal, wouldn't you say?
>
> SUSAN OLSON
> Alpaca Loco
> Riverside, CA
>
> ============
Sorry, Susan, whilst everyone has different tax circumstances, I
don't see how anyone in the US can recover ALL their alpaca
expenditure in tax, because no-one pays 100% tax on their
income or capital gains.
Also what you seem to be describing is a deferment of tax, by way of
accelerated depreciation. For example, lets assume you buy an alpaca
for $20,000 and wholly write off the cost in year 1, saving say
$7,000 tax that year (20,000@ 35%). The alpaca still costs $13,000 net
(20,000-7,000)
tax will then arise on that $10,000 (say at 35% too, or $3,500),
giving a net income that year of $6,500 (10,000-3,500)
alpaca has still cost (net) $6,500 over the 3 years. The $3,500 "tax
saving" is not some special bonus, but just a fair allowance for the
fact that (in this example) you have actually lost (gross) $10,000
over 3 years.
Richard
Maidstone Kent UK
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posted by Chaddo at 4:18 AM
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