Violin depreciation

[John C]

I have a client who plays a violin at such things as square dances and many other events in her business. She purchased a new violin this past year for $5,000. Any suggestions as to the length of time to depreciate it?

[rosieea]

As posted under thread titled "Instruments," property with no class life assigned, MACRS 7 years.

[OldJack]

A bird in the hand is worth 2 in the bush! Code §179 write-off on form 4562.

[Dervis]

Violin

I have used 7 years, also.

[John C]

Thank you

Thanks for the help.

[sea-tax]

I got a new client this year who plays the cello professionally and I can't beleive what it cost. In excess of 40k and she is paying on a loan with interest.
I also think that 7 years is the right class life.

[ChEAr$]

question

for OP to ask client, is whether or not said violin was new or an antique.

Now i KNOW you're not going to get a Strad for that, but IF it's an appreciating
asset, no depreciation is allowed.

[Snaggletooth]

Depreciate a Strad

I think you depreciate a piece of equipment used in your business whether
it actually depreciates or not. Even a Strad.

MACRS - stands for (Modified) Accelerated Cost Recovery System.
Emphasis on Cost Recovery instead of actual loss in value.

[jainen]

indefinite useful life

>>you depreciate a piece of equipment used in your business whether
it actually depreciates or not. Even a Strad.<<

The issue with a strad is not that it gains value. Many business assets, obviously including real estate improvements, can increase in value and still be eligible for cost recovery.

An antique is not eligible if it has an indefinite useful life.

[OldJack]

>>An antique is not eligible if it has an indefinite useful life.<<

Ask the agent to define indefinite. Why "play" around with it... recover the cost as quick as possible. (pun intended.)

[jainen]

only a violin

>>Why "play" around with it<<

Don't fret--it's only a violin.

[OldJack]

Quit "fiddling" with it and just do it.

[jainen]

take it on

Normally I could take it on the chin, but today I'm going to bow out of this string.

[ChEAr$]

I'll never compete

Normally I could take it on the chin, but today I'm going to bow out of this string.

with you guys.

But seriously, to depreciate any asset under the US tax code, it must have a
determinable useful life.

A Stradivarius doesn't qualify.

Besiders , who would use a violin to play a square dance gigs?
It's a FIDDLE!

[New York Enrolled Agent]

The Tax Court has allowed depreciation on expensive violins and even antique violin bows. You might want to read Liddle 103 TC 285. That is a regular Tax Court case - full value as precedent. Also, Liddle will cite a case called Simon, where the antique bows were allowed depreciation.