Simon v. Commissioner

68 F.3d 41 (2nd Cir. 1995)

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Nature of the Case

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Facts

P purchased two antique violin bows made by Tourte in 1985. At the time of purchase, they were essentially unused. The purchase prices were $30,000 and $21,500. The bows were appraised in 1990 at $45,000 and $35,000 despite the fact that they had physically deteriorated. Ps used the bows regularly in their trade. In 1989, the tax year in question, P performed in four concerts per week and in numerous rehearsals. This subjected the bows to substantial wear and tear. P believed that they were entitled to depreciate the bows under ACRS. The tax court agreed and found that the bows suffered wear and tear when used regularly by performing musicians. However, there remained the issue of the fact that the asset still retained its value as an antique and thus the IRS appealed claiming that the bows were not property of a character subject to depreciation and that all property beside wear and tear must have a determinable useful life.