Simon v. Commissioner
United States Court of Appeals for the Second Circuit
68 F.3d 41 (1995)
Relevant factsFree
Professional violinists the Simons (plaintiffs) bought two nineteenth-century collector's bows that appreciated in market value over time despite the physical wear and tear ordinary use inflicts on any bow's sound quality; they claimed ACRS depreciation deductions, the Commissioner (defendant) disallowed them arguing the bows lacked a determinable useful life given their appreciating value, and the Tax Court allowed the deductions.
IssueFree
Whether demonstration of a business asset's useful life is required to take depreciation deductions under the Accelerated Cost Recovery System.