Buying a Home Before Year-End in Crown Point: The Tax Papers to Keep

If you are buying a home before year-end in Crown Point, your closing date decides which tax year your mortgage points and your share of the property taxes land in. The Internal Revenue Service (IRS) rules for points, property taxes, and Form 1098 are in Publications 530 and 936. At our Crown Point shop we set the closing date with you, then put every paper from closing day in one folder before New Year’s.

We’re the shop on South Main in Crown Point. Love Thy Neighbor. Call (219) 801-0432.

Trying to close by December 31? Call (219) 801-0432 and we will lay out the dates with you on the phone. Still looking? Search homes for sale. You can see homes for sale and sold homes across Indiana and Illinois there.

This is how our shop runs a year-end closing for buyers in Crown Point and the Northwest Indiana towns we work, plus what the IRS publishes. We are Realtors, not tax preparers. Take the questions below to yours. Start the buyer path on Buy. More guides are on Learn: Buying and Learn: Financing. Short questions go to Ask Realest.

Why the closing date matters in November and December

Two IRS rules tie your taxes to the calendar. Publication 936 says points you can fully deduct are deducted in the year you pay them. Publication 530 says you are treated as paying property taxes starting on the date of sale. Close on December 30 and those items belong to this tax year. Close on January 4 and they move to next year.

The publications on IRS.gov when we checked on October 26, 2026 were the editions for 2025 returns. Ask your tax preparer what changes for 2026 before you count on a number.

Holidays squeeze the calendar. The Consumer Financial Protection Bureau says lenders must give you the Closing Disclosure three business days before your scheduled closing. We pick a date that leaves room for that wait, the title company, and the office closures around Christmas and New Year’s.

Points: this year or over the life of the loan

Publication 936 says points are charges paid to get a home mortgage. It says they may also be called loan origination fees, maximum loan charges, loan discount, or discount points.

You can fully deduct points in the year paid only if you meet every test in Publication 936. The loan has to be secured by your main home. Paying points has to be an established business practice where the loan was made. Publication 936 says the points also cannot be more than the points generally charged in that area. You must use the cash method of accounting. Publication 936 says most individuals use this method. The points cannot stand in for fees listed on their own, such as appraisal, inspection, title, or attorney fees, or property taxes. And the money you brought to closing, plus any points the seller paid, has to be at least as much as the points charged.

Miss a test and you deduct the points evenly over the life of the loan instead.

Seller-paid points count for you. The buyer treats points the seller paid as if the buyer paid them, and lowers the home’s basis by the same amount. If you negotiated a seller credit for points, keep the Closing Disclosure page that shows it. Read our seller concessions guide for how those credits get written.

Not points. Publication 936 lists appraisal fees, notary fees, VA (Veterans Affairs) funding fees, and mortgage insurance premiums as lender charges for services. It says you can’t deduct them as points, in the year paid or over the loan.

Property taxes in the year you buy

Publication 530 says that for federal income tax purposes, the seller is treated as paying the property taxes up to, but not including, the date of sale. You are treated as paying them starting on the date of sale. It says this holds no matter what the lien dates are under local law.

Publication 530 says this information is generally shown on the settlement statement you get at closing. You and the seller each deduct your own share, if you itemize.

Escrow. If your lender collects taxes in escrow, Publication 530 says you can deduct only the real estate taxes the lender actually paid to the taxing authority. Your tax bill shows that amount. Real Estate USA explains the account in What is an escrow account.

Old taxes. If you agree to pay taxes the seller owed for an earlier year, Publication 530 says you can’t deduct them. They become part of the cost of your home.

Fees on the bill. A charge for a service billed to your property, like a yearly trash fee, is not a deductible real estate tax, even when the taxing authority collects it.

For how Indiana property taxes show up at the closing table, read Real Estate USA’s property taxes when you buy a home in Northwest Indiana and our Indiana property taxes and homestead answer.

Form 1098 and the January mail

Publication 936 says that if you paid $600 or more of mortgage interest on one mortgage during the year, you will generally get a Form 1098 from the mortgage holder. It says the form should be sent to you by January 31 of the next year.

For the year you buy a main home, Form 1098 also shows the points paid that year, including points the seller paid.

Publication 936 for 2025 returns also sets a dollar limit on the home loan behind the interest deduction. For debt taken out after December 15, 2017, the limit is $750,000, or $375,000 if married filing separately.

Publication 530 says you deduct these costs of owning a home on Schedule A of Form 1040, which means you itemize. If you itemize, you can’t take the standard deduction. Which one comes out ahead is a question for your tax preparer.

Closing costs to keep for the day you sell

Some closing costs never show up as a deduction and still matter later. Publication 523 lists settlement costs you can add to your home’s basis: abstract fees, charges for installing utility services, legal fees for the title search and the sales contract and deed, recording fees, survey fees, transfer or stamp taxes, and owner’s title insurance.

Publication 523 lists costs you can’t add, such as fire and casualty insurance premiums, a credit report, the appraisal your lender required, and points.

Publication 523 says to keep the records that show your basis until 3 years after the due date of your tax return for the year you sell. That can be decades from now. Our folder rule is simple: Closing Disclosure, deed, owner’s title policy, and improvement receipts, all in one place. The full closing cost picture is on our buyer closing costs page for Lake and Porter counties and in our buyer closing costs answer.

Questions about your own closing date? Call our shop at (219) 801-0432. We answer the phone on South Main. Want to keep looking first? Search homes for sale.

The Indiana filing after closing: homestead

The homestead deduction is a property tax filing, separate from your income tax return. The Indiana Department of Local Government Finance says you apply with the county auditor, and that you reapply when a property is sold or the title changes. So plan on filing your own.

The department gives an example: an application completed on or before January 15, 2026 went on the 2025 Pay 2026 tax bill. Lake and Porter post their own steps and dates. Our Indiana Homestead Deduction page for Lake and Porter County has them.

How we run a year-end closing

1. Pick the date with a calendar open. We count back from the closing date for the Closing Disclosure wait, title work, and holiday office hours. Then the date goes into the purchase agreement. See From Offer to Closing.

2. Ask about points early. Your loan officer can show a quote with points and one without. Read Mortgage Pre-Approval With Our Crown Point Shop and Mortgage types Northwest Indiana buyers actually use. Real Estate USA covers rate locks.

3. Line up the other deadlines. Earnest money and insurance run on the same clock. Read Earnest Money With Our Crown Point Shop and Homeowners Insurance in Crown Point.

4. Read the Closing Disclosure with you. We find the points, any seller credit, the prepaid items, and the property tax lines, and match them to what you expected.

5. Build the folder at the table. The Closing Disclosure, deed and owner’s title policy go in first, and improvement receipts follow as you make them.

6. Remind you about homestead. After the deed records, we point you to the county auditor for your parcel.

7. Hand it to your preparer in January. Bring the folder and your Form 1098 when it arrives.

Year-end home buying by town

The IRS rules are the same in every town. The tax bill and the auditor’s office depend on the county. Buyers come to us for Crown Point, St. John, Schererville, Dyer, Munster, Highland, Cedar Lake, Lowell, Merrillville, Hobart, and Valparaiso. The lead photo is the Peoples State Bank Building and its block of South Main Street in downtown Crown Point.

For what living there is like, Real Estate USA keeps guides to homes in Crown Point, St. John, Schererville, Dyer, Munster, Highland, Cedar Lake, Lowell, Merrillville, Hobart, and Valparaiso. New to the county seat? Read Real Estate USA’s Moving to Crown Point, Indiana guide.

The tradeoffs to weigh

December closing or January closing. December puts deductible points and your share of the year’s property taxes on this year’s return under the IRS rules above. January gives everyone room around the holidays. Your preparer can tell you which matters more for you.

Paying points or a higher rate. Points cost cash at closing. Whether they pay off depends on how long you keep the loan. Ask your loan officer to put both versions side by side.

A seller credit for points or a lower price. Publication 936 treats seller-paid points as yours, and they lower your basis. Ask your preparer how either choice plays on your return before you counter.

Itemizing or the standard deduction. Every deduction above needs Schedule A. If the standard deduction is bigger for you, the closing date may matter less than it looks.

What we will ask you back

Expect questions about your target date, your lender, whether points are on the table, who prepares your taxes, and how firm the date is. Buying for the first time? Grab our First-Time Home Buyer Packet. Ready to talk? Use our contact page or call (219) 801-0432.

Questions about buying a home before year-end in Crown Point

Can I deduct mortgage points if I close on my house in December?

Maybe. IRS Publication 936 says you can fully deduct points in the year paid only if you meet all of its tests, including that the loan is secured by your main home. Otherwise you deduct them over the life of the loan. Ask your tax preparer. Call us at (219) 801-0432. We are licensed in Indiana and Illinois.

Who deducts the property taxes for the year I buy a home?

IRS Publication 530 says the seller is treated as paying property taxes up to, but not including, the date of sale, and you are treated as paying them starting on the date of sale. Each of you deducts your own share if you itemize.

When will I get Form 1098 for my new mortgage?

IRS Publication 936 says you will generally get Form 1098 if you paid $600 or more of mortgage interest on one mortgage, and that it should be sent by January 31 of the next year. In the year you buy a main home it also shows points paid, including seller-paid points.

Can I deduct my closing costs?

Some of them. IRS Publications 936 and 530 cover deductible points and your share of the property taxes. Publication 523 says some other settlement costs go into your home’s basis instead, such as recording fees, survey fees, transfer taxes, and owner’s title insurance. Keep your Closing Disclosure for the day you sell.

Do I need to file for the Indiana homestead deduction after I close?

Plan on it. The Indiana Department of Local Government Finance says you apply with the county auditor and reapply when a property is sold or the title changes. Our Indiana Homestead Deduction page has the Lake and Porter steps and dates.

How do I start buying a home with Realest?

Call (219) 801-0432 or email saso@realest.com. Visit us at 112 S. Main St., Suite B, Crown Point, IN 46307. Bring your pre-approval letter, your target closing date, and your tax preparer’s name if you have one. Love Thy Neighbor.

Talk to the shop

Realest, 112 S. Main St., Suite B, Crown Point, IN 46307

(219) 801-0432 | saso@realest.com

Love Thy Neighbor

Top photo: Peoples State Bank Building, Crown Point, October 2018 by Chris Light, CC BY-SA 4.0, via Wikimedia Commons. Cropped.

Next reads: Buy, Learn: Buying, Buyer closing costs, Homestead deduction, Homeowners insurance shop, Crown Point hub. Homes for sale and sold homes in Indiana and Illinois: Search homes for sale.

Sources

• IRS Publication 936, Home Mortgage Interest Deduction (for 2025 returns): points, seller-paid points, Form 1098, home acquisition debt limit
• IRS Publication 530, Tax Information for Homeowners (for 2025 returns): division of real estate taxes, escrow, delinquent taxes, service charges, Schedule A
• IRS Publication 523, Selling Your Home (for 2025 returns): settlement costs in basis, records to keep
• Consumer Financial Protection Bureau: Closing Disclosure explainer (three business days)
• Indiana Department of Local Government Finance: Deductions and Credits (apply with the county auditor, reapply after a sale)

This page is shop process, not tax, legal, or accounting advice. Your tax preparer, your loan documents, and your county auditor have the final word.