Deductions & credits

More information is needed.  What is the actual market value and what did they pay when they bought it?  Also, are they treating this as a formal rental and declaring the income on schedule E, or is it an informal family thing.  How long did your parents live in the home as their main home and will it be more than 3 years (1095 days to be precise) from the day they moved out to the day they will close the sale with the cousin?