Can somebody please help me with this scenario. I had a primary residence that i convented into a rental. I understand that i will be losing the home sale exclusion. however, was just curious what the basis would be? Also, to minimize my tax liability at the sale of the investment property, could i take out a line of credit against the property (lowering my basis). I didn't want to do a like kind exchange cause i want out all together? Any suggestions. Thanks.