Is a HELIC considered profit?

[William C.]

CPA’s, accountants, and loan officers please chime in but obviously don’t provide anyone with tax advice, but does my logic make any sense?

I was told once by a lender that debt service is not considered profit. For example let's say a real estate investor purchased a home for $100k cash. Then resonated the home with $50k cash. Then borrowed 50k in the form of a HELOC and purchased another property. Then sold the first property for $250k, having invested $150k, then paying off the HELOC of $50k leaving $50k in profit. Are taxes paid on the $50k in profit as well as the $50k HELOC?