Small breeders like us are the backbone of this industry our alpacas are of the highest quality genetics and because we are small we must make business decisions which will produce exceptional alpacas so we can stay competitive with the big guys. Section 179 of the IRS tax code allows Alpaca Owners to deduct the full purchase price of Alpacas purchased or financed during the 2008 tax year. That means if you buy (or finance) alpacas, you can deduct the FULL purchase price from your gross income.*