How MoveZen Categorizes Expenses on Your Cash Flow Report
Learn how MoveZen categorizes property expenses on your Cash Flow Report, including the difference between repairs, improvements, and recurring maintenance.
Audience: Property owners reviewing their Cash Flow Report who want to understand how expenses are organized and what the categories mean.
Your Cash Flow Report includes every expense MoveZen paid on your behalf during the year. To keep reporting clear and useful for tax preparation, we organize expenses into categories based on IRS guidelines and the nature of the work performed.
Expense Categories
Repair Expense Reactive repairs that restore something broken to working condition. Examples include fixing a leaky faucet, repairing an HVAC unit, clearing a clogged drain, or replacing a broken outlet. Starting in 2026, your Cash Flow Report will show subcategories within repairs such as HVAC, plumbing, electrical, appliances, and turnover-related work.
Preventative/Recurring Home Care Scheduled or recurring services that aren't reactive repairs. This includes pest control, lawn care, routine cleaning, HVAC maintenance contracts, gutter cleaning, and similar ongoing services.
Property Improvements/Renovations Capital improvements that add value, extend the useful life of something, or involve full replacement of a system or surface. Examples include full roof replacement, new HVAC system installation, new appliances, full interior repaint, or flooring replacement.
Other Expense Categories Your Cash Flow Report may also include management fees, lease fees, or utilities paid on your behalf if MoveZen handled those payments for you.
Why the Repair vs. Improvement Distinction Matters
The IRS treats repairs and improvements differently. Repairs are generally deductible in the year they're incurred, while improvements must be capitalized and depreciated over time. We use IRS guidelines—including the $2,500 de minimis safe harbor rule—to help determine how expenses are categorized. Individual items under $2,500 are typically categorized as repairs, while larger expenditures that add value or extend useful life are categorized as improvements.
A Note on Tax Reporting
MoveZen categorizes expenses based on IRS guidelines to give you a helpful starting point, but we're not tax professionals. How any expense is ultimately treated on your tax return is between you and your CPA. If you have questions about whether something should be deducted or depreciated, please consult a tax professional for guidance specific to your situation.
Questions?
Submit a Help Ticket Phone: (910) 447-9495 Email: mzaccounts@movezen360.com