You are correct that Improvements to your Rental Property will increase the basis of the Sale Property.
If you entered the rental property and improvements in the Sale of Property/Depreciation section, be sure you didn't elect to take the Improvements as Expenses and elected to Amortize them instead. The 'date you first started using' the Improvements should be prior to the Sale Date.
TurboTax asks about the Sale Price of the Asset (Improvements) and then about the Sale Price of the Home and the Land (since you indicated that they were both sold) and also Sales Expenses.
You can view the Home Sale Worksheet and also the Adjusted Basis of Home Sold Worksheet when you View/Print your return. If you are using the desktop product, you can click on FORMS to view and make entries.
Click this link for more info about Depreciable Basis.
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