Date posted: 06/08/2021

Submission on Draft QWBA PUB00391

CA ANZ recently provided feedback to Inland Revenue on Draft QWBA PUB00391 If I run a hotel, motel or boarding house and live on site, what expenditure can I claim?

Inland Revenue recently released a draft question we’ve been asked for consultation. Draft QWBA PUB00391 If I run a hotel, motel or boarding house and live on site, what expenditure can I claim? fills a gap left by recent QWBAs which addressed short stay accommodation (airBnB’s). 

When finalised the QWBA intends to apply to self-employed proprietors of hotels, motels, boarding houses, or any other businesses that provide accommodation through business premises (excluding those covered by the short stay accommodation items QB 19/05 – 19/09). It concludes expenses relating solely to the private quarters are not deductible.  Expenses incurred for both business and private purposes must be apportioned.  The QWBA also explains how to apportion the expenditure.

The QWBA is well written and easy to follow.  The suggested apportionment methodology is logical, and taxpayers and advisers should find it relatively easy to apply.

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