Due to the timing and price of my sale and purchase of my old home and new home, I end up paying more taxes when I try to use the 1098 mortgage deduction from both homes. Am I obligated to file both or can I just use one 1098 to get the best tax rate?
Based on the warning in the 1098 it seems like it will be OK because none of the following will be triggered:
The information in boxes 1 through 9 and 11 is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for this mortgage interest or for these points, reported in boxes 1 and 6; or because you did not report the refund of interest (box 4); or because you claimed a non-deductible item.
