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Buying Suri Llamas Has Gotten A Whole Lot Easier!
by John Robinson
 The
"Jobs and Growth Reconciliation Act." was enacted
into law on May 28, 2003, and this legislation gives amazing
incentives for people who buy suri llamas. The "179 deduction"
was raised and, as of 2003, allows a deduction of $108,000.
If you purchase your suri llamas before year-end, you can
claim the entire deduction of $108,000. This benefit is huge
for those buying their first suri llamas, or for breeders
expanding their businesses. Hurry, this benefit expires
at the end of December, 2009!
The "179 Deduction"
This deduction under the IRS Code is available every year
when you purchase IRS code 1245(a) (3) assets that are acquired
for use in an active business [(Code Section 179 9 (d) (1)]
What is unbelievable is that you can use this deduction to
write off your purchase of suri llamas up to $108,000. Better
yet, you can deduct another $112,000 next year. If you think
this is unbelievable, then wait until you see how this can
pay for up to 45 percent of your suri llama purchase.
Purchase Price of one or more suri llamas: $108,000
Section 179 Tax Deduction: $108,000
Tax Savings of 45 percent: $48,600
Actual Suri Llama Purchase: $59,400!
This deduction is available to all tax payers. You can adjust
your deduction by using your state and federal tax bracket
and apply that to your personal situation. To see how much,
simply calculate your state and federal tax bracket and multiply
it by the amount of your purchase up to $108,000. Please,
note that you are eligible for this deduction whether you
pay cash or finance your purchase. Planned correctly, your
tax return could exceed your cash down payment, if your suri
llamas are purchased on terms.
Study the Details Carefully
Naturally, there are details to be studied carefully. For
example, you must have sufficient income to use the deduction.
If you have no ordinary income, then the deduction will be
limited. Secondly, the unused portion of the deduction can
be carried forward to subsequent years. Also you may want
to pass on taking the deduction and simply depreciate the
cost of your herd, which would allow you to create a net operating
loss to be carried back two years. You may obtain a refund
of previously paid tax. Keep in mind, to benefit from the
179 deduction you cannot place more than $430,000 of qualifying
assets in service in the year the deduction is taken.
Always Check with Your Accountant
Before you act on any new feature in the IRS Code, however,
contact your accountant for specifics to your personal situation.
When your accountant says, "Go!" get out there
and buy yourself those suri llamas you've always wanted!
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