Take out HELOC to reduce capital gains tax?

[Fayezin I.]

Hello BP,

I am considering selling my NYC condo where I have about 180k in equity if I pay off the mortgage. I was going to take a 50k HELOC to renovate the apartment before I put it on the market to get top dollar for the property. If I take out the HELOC, do I pay capital gains tax on the full 180k net profit or 130k because of the HELOC?

My question is whether the HELOC amount be considered for gains tax? If not is it an effective strategy to reduce gains tax?

Thanks in advance!