To sell or not to sell rental house

[calmloki]

I wonder could OP avoid some tax by borrowing against the property, does this work ?

1) borrow $200K via HELOC.
2) sell property for $360K
3) capital gain is: $360K - ($200K borrowed) - ($150K purchase) = $10K Capital gain

I've looked longingly at that cunning plan but when suggested to our tax person she says no.

 

[Teacher Terry]

There is only 1 months supply of homes in Reno so should sell fast.