What qualifies as a business expense?
Let's say I want to offer my employees a prize for top salesman of the month, so the company buys a vacation home and every month the employee with the highest sales gets to use it for a week as a prize. Will this allow me to write everything off?
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General accounting procedure would dictate that you could write off the value of the expenses that could reasonably be attributed to your business.
Staff incentives are often tax deductible, however unless the Vacation Home is used EXCLUSIVELY as a staff incentive (which I doubt is the case) then only the portion of the expenses that could reasonably be attributed to your business (being staff incentives) can be claimed as business expenses.
This is a complex question that you should refer to your accountant.
Also, other tax advantages/ considerations may exist in relation to the purchase of Real Estate.
No, no, no. the business is not in the hotel lodging business. Nothing about this is deductible.