• A major improvement is a long-term upgrade, adaptation, or improvement to a property that adds value to it, often including structural changes or restoration.
  • The IRS provides special tax treatment to qualified capital improvements, distinguishing them from ordinary repairs.
  • In addition to home improvements, major improvements can increase the underlying value of a property, which in turn reduces the tax burden of selling it.
  • In some states, major improvements may allow landlords to increase their rent more than is legally allowed.