Assuming you are also an owner on the title, have the title agency show all the proceeds to you on the 1099-S. As long as you are an owner you satisfy the ownership test for the exclusion.
As for the new home I'm not sure you give your parent's a down payment. They will co-sign on the loan and you give the down payment to the mortgage company and make the payments. Your parents will not be on the deed; only on the loan.
If you itemize deductions since you are making the payments and have your name on the deed, you can deduct the mortgage interest and property taxes.
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