"I Closed Escrow on my new home, however my Tax Accountant is asking me for certain paperwork to use on my income taxes. What is he talking about and where do I get it?"

Key Documents Your Tax Accountant Needs

1. Closing Disclosure (CD)

Most important document

What it’s used for:

• Mortgage interest paid at closing

• Points or loan origination fees (may be deductible)

• Property taxes prepaid at closing

• Certain closing costs that affect your cost basis

Where to get it:

• From your lender (they are required to provide it)

• Also available from the title/escrow company

• Check your email or lender portal — often sent electronically

📌 This replaces the old HUD-1 form

2. Form 1098 – Mortgage Interest Statement

(If you have a loan)

What it’s used for:

• Reports mortgage interest paid

• Shows deductible points (if applicable)

Where to get it:

• Issued by your mortgage lender

• Usually available by January 31

• Download from your lender’s online account or mailed to you

⚠️ If you closed late in the year, the interest amount may be small — but still matters.

3. Property Tax Statement / Proration Info

What it’s used for:

• Determines how much property tax you actually paid (not what the seller paid)

• Prevents double-counting taxes on your return

Where to get it:

• On the Closing Disclosure

• From your county treasurer’s office

• From your escrow company if taxes were prorated at closing

4. Purchase Contract (Optional but Helpful)

What it’s used for:

• Confirms purchase price

• Verifies credits, concessions, or seller-paid items

• Supports cost basis for future sale

Where to get it:

• From your real estate agent

• Your electronic signing platform (DocuSign, etc.)

5. Receipts for Any Post-Closing Improvements

(if applicable)

What it’s used for:

• Adds to your adjusted cost basis

• Reduces capital gains when you sell later

Where to get it:

• Your own records

• Contractor invoices and receipts

💡 Improvements ≠ repairs (new roof, HVAC, remodels count)

Bonus: If This Is a Rental or Business Property

Your accountant may also need:

• Settlement statement broken into deductible vs capitalized expenses

• Escrow statements

• Depreciation start date (your closing date)

Quick Checklist to Send Your Accountant

✔ Closing Disclosure✔ Form 1098 (when available)✔ Property tax info✔ Purchase contract (if requested)✔ Improvement receipts (if any)

Bottom Line

Your accountant is ensuring you:

• Maximize deductions now

• Correctly establish your cost basis for the future

• Avoid IRS issues later