When you say improvements if that means the land was being prepared for it's intended purpose then the cost of the land improvement is added to the cost of the land increasing basis and thus reducing gain. This would include items like clearing and leveling the land.
If you added functionality to the land then those items are separate items and the cost is to be depreciated once put into service to generate income. When the land is sold the sale price is allocated to each of the items of improvement as well as to the land itself. Items such as drainage and irrigation systems, fencing, landscaping, and parking lots and walkways would fall into this category. Essentially, the undepreciated cost of the items is basis so reduces gain.
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