Violinists can depreciate antique instruments.

In two recent Tax Court cases, three professional musicians were allowed to depreciate antique bows and a 17th century viol">bass viol, respectively.

In the first case, Simon (103 TC no. 15), Mr. and Mrs. Simon, both professional violinists, bought original Tourte bows, made in the 1800s, for use in performances. They paid $30,000 for the bows, which needed some restoration, and claimed depreciation for them. The Internal Revenue Service disallowed the depreciation deductions, but the Tax Court allowed them since the bows were shown to wear down from use and were used in a trade or business.

The IRS has always argued in such cases that musical instruments are priceless works of art that do not depreciate over time. The distinguishing factor in this case was that the Simons proved the bows wore out.

In the second case, Liddle (103 TC no. 16), the taxpayer bought a 17th century bass viol made by Ruggeri (a contemporary of Stradivari) for use in the business of playing the viol professionally. Depreciation was allowed. Even though a Ruggeri is regarded as a work of art, for which depreciation is traditionally not allowed, the taxpayer showed the viol met the definition of depreciable property as property used in a trade or business.

Note: The IRS says it does not intend to acquiesce on this issue.