@elci525
You do not have to be a legal owner on the deed but you must be an "equitable owner." This is somewhat complicated to describe in a short answer here. Best explained by example.
1. A man bought a home for his brother, a new immigrant with no credit history. the brother lived in the home and made all the payments and performed all the maintenance and other responsibilities of ownership. The tax court ruled the brother was the equitable owner and could deduct the mortgage and taxes.
2. A man lived with his father in his father's home. He provided care for his disabled, fixed-income father, performed all the maintenance and other responsibilities of ownership, paid all the taxes, and expected to inherit the home when his father died. The Tax Court ruled he was the equitable owner for the deduction.
Here, you may well be the equitable owner, if you pay all the bills and accept all the responsibilities of ownership. It may be more complicated for you given the situation and that your parents likely committed some kind of fraud to buy in a restricted community you don't qualify for. If you do claim the deduction, you are taking a risk, and will have to explain to the auditor and the Tax Court how you should be considered as the equitable owner. It's a risk, good luck.
