Q. So our best idea is to have her file herself and claim the entirety of the house (which the mortgage interest and taxes) are greater than the standard deduction and I just take the standard deduction?
A. Yes.
Q. Will it trigger an audit if we do this?
A. Probably not, particularly if the 1098 is in her name and SS#.
Q. But, what if I put down that I own the house but don’t pay anything?
A. Although you enter that info, in TT, it is not sent to the IRS, since you don't claim anything. Since, you're not claiming anything on the house, don't enter anything.
