SIMON V. COMMISSIONER 103 T.C. 247 (1994) CASE BRIEF

SIMON V. COMMISSIONER

103 T.C. 247 (1994)

NATURE OF THE CASE: Simon (P) claimed depreciation on two violin bows under 26 U.S.C.S. 168(b)(1). IRS (D) disallowed the deduction and assessed a tax deficiency. P petitioned.

FACTS: Richard Simon has maintained two careers as a violinist, one as a player with the orchestra (and later with the Philharmonic) and the second as a soloist, chamber music player, and teacher. Fiona Simon has maintained two careers as a violinist, one as a full-time player with the Philharmonic and a second as a soloist, chamber music player, teacher, and free-lance performer. In 1985, P purchased two antique violin bows made by Tourte. 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. They were not purchased as collectibles. Ps used the bows regularly in their trade as they were purchased for their ability to produce superior sound; their tonal quality. 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. Ps claimed a depreciation deduction of $6,300 with respect to bow 1 and $4,515 with respect to bow 2; these amounts were in accordance with the appropriate ACRS provisions that applied to 5-year property. D disallowed the deductions. Ps petitioned.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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