In the ideal world, all moves would go perfectly smoothly. You’d sell the old home at the same time you buy the new home, and you’d be able to move on your own schedule. But, in reality, moving usually doesn’t work this way. Many moves have an interim period during which you have to get out of the old home, but aren’t able to move into the new place yet. Temporary housing is a solution for dealing with this moving interim period.
Temporary housing options
• Hotels: A hotel is the easiest option for temporary housing. However, the costs of the room and eating out will quickly add up.
• Long-Term Stay Hotels: This is a more affordable option, but you might not have many options in the area. You also probably won’t have a kitchen, so you will still have to pay for restaurant meals.
• Sublets: You might get lucky and find someone subletting their apartment. This option is ideal because you don’t have to sign a lease and the apartment is furnished. The downside is that sublets are informal and it could fall through.
• Renting an Apartment: This will give you the most flexibility with where you live, but you will have to sign a lease and get utilities set up. Unless it is a furnished apartment, you will also need to arrange for furniture – which will probably mean packing and unpacking your stuff twice, once for the old home and once for the rental.
• Corporate Housing: Corporate housing usually refers to a furnished home or apartment. Most are quite luxurious and will be more expensive than a typical rental. However, this is the most convenient option in cases where you will have to wait weeks or months to move into your new home.
Deducting temporary housing expenses on taxes
When you are moving long distance for work, and will be working at that job for at least 39 weeks during the upcoming year, then you can deduct moving expenses on your taxes. However, the IRS severely limits deductions for temporary housing. You are only allowed to deduct the housing for time during transit, a day of housing for the arrival date, and a further day of housing prior to transit if you leave your home before transit begins. While it might not seem like much, it is better than nothing!