for improvements listed as assets, you must allocate part of the selling price and selling expenses to each. otherwise, they will not be treated as sold with the result you gain will be overstated by their net tax basis.
for improvements, you did not add to the assets and did not depreciate see a tax pro. the tax laws say you must compute your gain based on the depreciation that would have been allowed. the only way to correct this issue is to file form 3115 with your return.
