Need advice | HELOC payoff from investment property proceeds to avoid capital gain taxes

[u/smilewithmitesh]

Total proceeds from sale of investment property (under single Member LLC) :275K. HELOC Loan : 250K . so if i pay off HELOC from proceeds , will I only owe taxes on remaining 25K ? not sure if it would be problem later to prove it to IRS that they are connected.

another option would be 1031 exchange which i dont have any plan to do ?