SIMON V. COMMISSIONER
68 F.3d 41 (2nd Cir. 1995)
NATURE OF THE CASE: This was a dispute over the deduction of antique violin bows under
ACRS. Commissioner (D) appealed from a decision of the Tax Court in favor of Simon (P) that
allowed depreciation deductions for violin bows as recovery property under I.R.C.
168(c)(1).
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.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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