Yes, the amount of the HELOC is not a factor. The amount actually spent on improvements to the home over the years are added to the cost basis which could be more than the HELOC. According to Publication 523, "Improvements add to the value of your home, prolong its useful life, or adapt it to new uses. You add the cost of additions and improvements to the basis of your property. Further, You can include repair-type work if it is done as part of an extensive remodeling or restoration job. The entire job is considered an improvement if items that would otherwise be considered repairs are done as part of an extensive remodeling or restoration of your home."
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
