A home purchase puts the numbers a preparer needs in three places: the Closing Disclosure, the lender's Form 1098 and the county tax bill. They rarely agree with each other, so this list asks for all three and says what each one is checked against. It is written for a client who closed in 2026, whose return is a tax year 2026 return filed in 2027.
Who sends itSent by the preparer to a client who closed on a home this year, once the lender's year-end statements arrive in January. Send it with the organizer so the client does not hand over only the Form 1098.
Reviewed November 10, 2026 · 26 items
0 of 26 ticked
01Closing paperwork
02Mortgage interest and points
03Property tax and escrow
04Basis items that are not deductions
05Return-level questions
What firms get wrong
Taking the Form 1098 interest alone and missing the prepaid interest on the Closing Disclosure, which the lender may not report.
Deducting the full property tax proration, including the seller's share. The buyer deducts only taxes from the sale date on, and an unreimbursed seller-paid share reduces basis.
Deducting escrow deposits instead of the amount the lender paid to the county.
Treating every settlement line as deductible, when title insurance, recording fees and transfer taxes add to basis instead.
Applying the 2025 SALT cap of $40,000 or the 2025 mortgage insurance rule to a tax year 2026 return, or the reverse.
Deducting all points on a second home or a refinance in the year paid.
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Questions about this checklist
Is the Closing Disclosure enough, or do I still need Form 1098?
You need both. Form 1098 covers the interest the lender received and sometimes the points, but it often leaves out settlement interest and property taxes prorated at closing. The Closing Disclosure fills those in, and the county tax bill confirms what was paid.
When does the lender send Form 1098, and what if it is missing?
The IRS says the 2025 mortgage interest statements should be provided by January 31, 2026, so expect the 2026 statements around the same time in 2027. If a client has no form in February, ask the servicer for a duplicate and use the year-end mortgage statement to check the interest.
Can a client deduct all the points paid at closing?
Only if every test is met: a main-home purchase loan, points shown as a percentage of principal, and the client's own funds at least equal to the points. On a second home or a refinance the points are generally spread over the loan's life.
Does every new homeowner itemize?
No. Add mortgage interest, real estate taxes up to the cap, points and other itemized deductions, then compare the total to the standard deduction for the right year. A client can lose the benefit if the total falls below $32,200 on a 2026 joint return.
How can Usual help collect these documents?
A yes or no answer, such as whether the client bought a home this year, can show the home purchase items and hide them otherwise. Reminders go out on schedule and stop when everything is in.