Can you tell me what kind of company you have? S-corp, C-corp, LLC?
AND when you say retreat, do you mean recreation or training and development?
Will the employees be renting it from the company, or allowed to stay there free in exchange for good performance, or simply for recreation during thier paid vacation time if they so desire?
Will this location be used for training and meetings, such as annual sales meeting?
Will you also be entertaining clients there.
We are an S corp. I envision using it for T&D and allow employees to use it free as they wish.
I plan to have quarterly meetings there and will also host clients or allow them to stay there.
This property sounds like it will be used as an extension of your business and corporate offices and as a training center. As such it is a depreciable asset related to your business. Business related and income producing realestate is always depeciated.
However the expense of maintaining and operating it is considered business and operational expenses.
If you let your employee vacation there for free, this may be considered a benefit which is taxable. Consider requiring your employees who vacation there pay rental fees.