Louis A. And Merridawn Browning v. Commissioner of Internal Revenue

Louis and Merridawn Browning (“The Brownings”) appeal the Tax Court’s decision that they were not entitled to depreciate three antique violins and that they were not entitled to an investment tax credit for one of the violins. The Brownings also appeal the Tax Court’s decision not to allow them to deduct certain expenses incurred in maintaining a music practice room in their home. The Tax Court upheld the finding by the Commissioner of Internal Revenue (“the Commissioner”) that the Brownings were not entitled to depreciate their violins, nor claim an investment tax credit, nor deduct expenses for the music room. We affirm.

BACKGROUND FACTS

Louis Browning is a professional musician. Browning performs in various places such as nightclubs and bars as well as at private engagements. In 1978, Browning purchased a Ruggeri violin for $24,000. The violin included a certificate of authenticity. In 1979, Browning purchased a Stradivarius violin for $130,000 and that, too, carried a certificate of authenticity. In 1981, Browning purchased a Gabrielli violin for $27,000. The Gabrielli was certified as authentic. All three violins were crafted by renowned violin makers and each is over 200…