Can I use the 50% tax rebate for my holiday house?

I have turned my rental property into a short-term holiday home – I’ve applied for a licence and am planning to build an outdoor deck. Will new extensions or additions to this holiday rental qualify for this new 50% investment allowance?

From what I can see, it’s only assets like computers, equipments, cars? Will purchase of furniture and bedding

then qualify?

Buildings, extensions and capital works will not qualify for the investment allowance. They are not tangible assets that are depreciable under Division 40 of the tax act. You may be entitled to claim investment allowance on the furniture. To be eligible, the cost of the items needs to exceed $1000 or a setting such as lounge setting or dining table and chairs must exceed $1000.

Your other issue will be to ensure that you are carrying on a business. The receipt of rental income is not considered to be business income. Where the accomodation being provided is a guest house with the provision of meals and other services, then this may satisfy the carrying on of a business.

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