Because arcade games are ‘listed property’ under IRC § 280F, you must maintain heightened substantiation records under IRC § 274(d). Required documentation includes: (1) date the game was placed in service, (2) purchase price and proof of payment, (3) seller information, (4) written statement of business purpose, (5) physical location of the game, (6) contemporaneous log of business use hours, (7) log of personal use hours, (8) calculated business use percentage, (9) revenue records if coin-operated, (10) maintenance records, and (11) IRS Form 4562 filed with your return. Use the Record-Keeping Checklist on this site to track all requirements.
