what is a certificate of capital improvement 
a certificate of capital improvement is a document that certifies that a certain project is considered a capital improvement a certificate of capital improvement is given by the owner to the construction manager or contractor to indicate that no sales tax is due 6the bottom linea capital improvement is a permanent alteration to addition to a property that increases its value or useability residential capital improvements are granted special tax treatment the money spent to improve a home can be deducted from the capital gains when the home is sold however it s important to distinguish between capital improvements or extraordinary repairs and ordinary repairs to qualify for the deduction the irs defines capital improvements as those that endure for more than one year upon their completion and are durable or permanent in nature 