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SLA keured suri llamas are a rare and valuable commodity. At the time of this writing, it is estimated there are fewer than 1,500 suri llamas in North America. This presents a ground floor opportunity almost unparalleled in the livestock community to invest in the improvement and preservation of an ancient breed. Owners of keured suri llamas benefit from the tax advantage of raising livestock which are compellingly beautiful, and by their very nature calm, intelligent and peaceful.
Potential Profits with Suri Llamas
Sale of keured breeding and show stock
Sale of keured offspring and breeding services
Sale of suri llama fiber and end products
Tax Advantages
For many people the tax advantages alone make raising suri llamas a financial win.
You may choose an active or passive approach to the suri llama business. Both have tax advantages.
Section 179 of the IRC allows you to deduct expenses for your suri llama business up to $105,000.
Income from other sources may be sheltered by expensing farm related business items.
Most states have real estate tax breaks for suri llama operations.
Breeding stock held for more than one year is subject to capital gains, rather than ordinary income. Refer to IRS Publication 225.
If you choose to be a "hands-on" suri llama breeder, all your expenses related to the business are deductible. Refer to IRS Publication 525-2004 Farmer's Tax Guide.
Purchased suri llama breeding stock can be depreciated over five to seven years.
Portfolio Diversification
Suri llamas are a 'tangible asset.' They can be touched and enjoyed and contribute to a healthy lifestyle.
Traditional investments such as stocks and bonds are out of your personal control.
Diversification of assets provides more stability to your portfolio.
Suri llamas enhance existing assets by putting your land to work.
Building Wealth Through Herd Growth
Suri llamas are an asset that reproduces (compounds) and has a renewable end-product in their fiber. Suris are an investment that is depreciable, fully insurable and grows annually without gains until you sell.
The chart below illustrates what you might expect over the course of five years from an initial investment of five bred suri females.
You may choose active participation or agistment in raising suri llamas. Active participation is a lifestyle investment It allows you the pleasure of having suri llamas on your land and you make all the decisions about breeding and management.
Agistment allows you to invest in suri llamas without taking a direct role in the farm activities. Agisting is the practice of purchasing livestock and boarding it on someone else's farm, leaving the care and maintenance to the farm operator. This passive ownership still allows the owner to depreciate his or her breeding stock and expense the cost of maintaining the animals while enjoying them on weekends.
Many banks or farm credit organizations will provide financing if you-have a business plan. Established suri llama breeders may offer terms on the purchase of animals. Terms wiII vary with each breeder.
Consult your tax professional to discuss starting a business with suri llamas today!
CRIA COMPOUNDING
Start with five pregnant females in year one--see how your herd grows by year six.
As in all livestock operations, results of individual breeding programs may vary.
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