Words and Phrases - "rent income"

Would the owner of a qualifying property that operates a hotel, or other similar business such as a motel or a bed and breakfast, be considered to use its qualifying property primarily to earn rental income as described in para. (b) of the definition of “qualifying rent expense,” such that it would be prevented from claiming the Canada emergency rent subsidy (“CERS”)?

CRA stated:

Generally, any income earned from the use or occupation of a property or a right to use or occupy property is considered to be rental income. However, where, in addition to basic services that are customarily supplied with rental of real or immovable property, an entity also provides significant additional services that are integral to the success of its ordinary activities, it is the CRA’s longstanding position that the entity would be earning income from the services provided instead of earning rental income from the use or occupation of the property.

Although the term “primarily” is not defined in the Act, “primarily” generally means more than 50% for income tax purposes. … With respect to a building … the use of its square footage is generally an accepted factor that is given significant weight in determining the particular use to which a building is put.

CRA went on to indicate that the application of these tests was a question of fact.