Violins

[bertrans]

Seriously, violins. Does anyone know - or know where I could find - information on the depreciable life of a concert violin? The standard references have come up dry. I seem to recall a tax court case, in the 90's, where a TP attempted to depreciate his concert Stradivarius - a work instrument; IRS said, 'No - because a Strad can only APpreciate'. Court found for the TP.Any help would be APpreciated!

[Nashville]

Appreciation/Depreciation

Anything you can write off deserves de-'preciation of de client.

Ridiculous. I don't know about your court case as to whether that
actually happened or not, but a building appreciates in value, yet
you are allowed to depreciate it.

I would depreciate a musical instrument over 7 years. As a concert
performer myself (in another life) I can attest to the fact that a musician's
actual use of a Stratovarious as a standard performance item would be
extremely foolhardy and remote. That probably had more to do with a
tax court decision than its depreciableworthiness.

Part of the depreciation "mentality" when these laws
were written has little to do with actual loss in value. More to do with
how quickly the investment in equipment can be recovered.

Those who doubt can look at the acrostic for ACRS and MACRS -
"Accelerated Cost Recovery System" and "Modified ACRS" The
depreciable nature is to partially compensate the investor for not
being able to write off his investment in the year the money was
spent.

[ChEAr$]

I remember the case

Seriously, violins. Does anyone know - or know where I could find - information on the depreciable life of a concert violin? The standard references have come up dry. I seem to recall a tax court case, in the 90's, where a TP attempted to depreciate his concert Stradivarius - a work instrument; IRS said, 'No - because a Strad can only APpreciate'. Court found for the TP.Any help would be APpreciated!

of the Stradivarus (not stratovarious!)

So go ahead and depreciate; you're on firm ground here.

[ED SMITH]

of the Stradivarus (not stratovarious!)

It is neither - it is correctly Stradivari, after its maker Antonio Stradivari - or more commonly Stradivarius.

[veritas]

Casualty Loss?

Oopsie

http://www.msnbc.msn.com/id/23179699

[taxxcpa]

Anything you can write off deserves de-'preciation of de client.


Part of the depreciation "mentality" when these laws
were written has little to do with actual loss in value. More to do with
how quickly the investment in equipment can be recovered.

Those who doubt can look at the acrostic for ACRS and MACRS -
"Accelerated Cost Recovery System" and "Modified ACRS" The
depreciable nature is to partially compensate the investor for not
being able to write off his investment in the year the money was
spent.

You make a good point and I would like to add that the term 'depreciation' is really not the same as cost recovery. The concept of depreciation must have originally been intended as a means of recognizing the expense over the useful life and was calculated by subtracting a 'salvage value' so that only the true expense portion was charged off.

Before ACRS, salvage value had to be deducted. Years ago if you traded cars every two years, you had to use two years and straight line and a salvage value. But if you traded every three years you could use double declining balance--which would never fully recover the cost, but would give some big first-year depreciation.

[Lion]

Violin

Don't know where I looked when she became my client, but I have a violin teacher/performer. We depreciated her $85,000 violin over 7 years, same for her newer $7,000 bow. Her $580 crystal, too -- I don't know, it has something to do with her teaching...

[Snaggletooth]

Egad!

Is it "Egad" or "Egads"??

In spite of my previous support of depreciation above (as "Nashville"), when does the concept of "ordinary and necessary" come into play?? An $85,000 fiddle?? C'mon...
Maybe she can trade it in on a Strato-strado-thingee.

[fliszt]

In her business my wife

has 2 Steinway grand pianos. I depreciated them over 7 years. They have appreciated in value over the past 20 years and are now so expensive I can hardly believe it. I also have a client that is a violn playing member in the local symphony. 7 years depreciation.
Now this is just what I've done.
Larry

[bertrans]

of the Stradivarus (not stratovarious!)

So go ahead and depreciate; you're on firm ground here.

Thank you very much indeed!

[bertrans]

It is neither - it is correctly Stradivari, after its maker Antonio Stradivari - or more commonly Stradivarius.

Mr Smith, you are absolutely correct: the form, 'Stardivari' is the genitive ('of Stradivarius').
It is a pleasure to see such concern for language!! Thanks!

[bertrans]

Oopsie


http://www.msnbc.msn.com/id/23179699

Incredibly timely!