<prompt> Human: My tax advisor dad helps me file my tax returns every year. In 2014, I sold my first home. I bought it 1.5 years prior for 230k, sold it for 295k. I put in about 15-20k in repairsrenovations. My dad had informed me there was no need to declare the sale unless I had at least 250k in profit.Now I got a letter from the IRS saying that I owe money on the sale of the house. After doing a bit of research, I found that I had to report the sale no matter what and wouldnt owe taxes only if I owned it and lived there for at least 2 years.Can anyone please advise me on what my options are at this point? And what should I explain to the IRS about this situation they expect a signed statement? I should also note that I immediately bought another home after selling the first one both in 2014 and paid 280k and put about 70k into renovations. Thanks in advance for your time and advice!  <response>: Refile your 2014 return 1040x, properly, not using Dad for tax advice this time. Pay whatever difference in taxes there is. Your signed statement can be I refiled my return.There is lots of information available about how to calculate capital gains taxes on the sale of houses. 