I recently completed building a house for myself and I’m ready to sell while the market is still warm.

I can prove I’ve lived in it for 14 months.

I’m trying to be creative to minimize my owed capital gains tax upon sale. I do not want to live in the house until the 2 year period is up.

Here’s a couple ideas I have running through my mind:

1). From my understanding, I can write off any improvements to the home that I paid for. Roughly 30k to finish basement walkout area. Is this a legitimized write off? How much would that save me on capital gains?

2). Obtaining a maxed LTV HELOC. I could pull roughly 25k out. This was my main question, if I pull out a HELOC now and then sell the house after, is that money considered for Capital Gains tax since it's technically a debt?

Building costs $199,000

Appraised at $280,000

For simplicity sake, assuming 80k in taxable gain.

If anyone’s had experience/know of a similar situation I would greatly appreciate the help.

Thanks,

Trey