What types of arcade games qualify?
Virtually any coin-operated or commercial-grade amusement device qualifies, including classic arcade cabinets, pinball machines, claw machines, racing simulators, air hockey tables, skee-ball machines, basketball shooters, and modern VR arcade units. The IRS classifies these under Asset Class 79.0 (Recreation) with a 7-year MACRS recovery period. The critical factor is not the type of game, but […]
Does the arcade game have to be brand new to qualify?
No. Both new and used property can qualify for bonus depreciation under IRC § 168(k), as amended by the Tax Cuts and Jobs Act of 2017. The key requirements are: (1) the property must not have been previously used by the taxpayer, and (2) it must not be acquired from a related party (as defined […]
Can I claim bonus depreciation if I’m self-employed?
Yes. Self-employed individuals who use an arcade game in their trade or business can claim bonus depreciation. The key requirement is that the game must be used in a qualifying trade or business — not merely as a personal hobby. For example, a sole proprietor who operates a bar, restaurant, or entertainment venue can claim […]