The definition of "improvement" is of no help, but from a word search on "improvement" I see now, on page 9 of IRS Pub 523, there is the example of a cost that cannot be regarded as an addition to cost basis:
"Any costs of any improvements that are no longer part of your home (for example, wall-to-wall carpeting that you installed but later replaced)."
So, yes, you are correct with regard to driveways (or any other capital expense) and this conforms with what I regarded as intuitive. Thanks for getting me to take a second look.
Problems remain. If the home was a new build and the driveway was included in the contract with the builder you are not likely to find the cost of the driveway (or any building system for that matter) itemized. In my experience with three new builds the only itemizations were for allowances for certain finishes and fixtures. If you later replaced the driveway or roof or any number of things, you would have no way of knowing the cost basis you are replacing.
Back to the question of new build free standing appliances and window treatments....
