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Who has been paying the loan? If you are living in the house and you are making the house payment, then you can claim the interest on the home. I would get your parents (assuming their SSN is on the 1098 from the mortgage company) to sign a note saying they are not claiming the interest on the house and you sign a similar note stating that you are claiming the interest on the house. Their note should be included with your tax return and your note should be included with their return. AND be sure to cross reference the SSNs as 1098s are a computer match item with the IRS.
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