In article , (Patscga) wrote:
Money you pay your parents for the mortgage will be considered rental income
and they must pay tax on it.
Yes, the interest will be tax deductible for them.

Not necessarily. If he makes the payments directly, it's not deductible for
either of them: not for the parents, because they didn't pay it, and not for
the child, because he's not legally responsible for the loan.

When they sell the house to you, they will have to pay tax on the money from
the sale.

Right here...

When you sell the house, the tax basis will be what they sold it to you for.
For instance, if they sell it to you for $100,000 and you sell it for $200,000,
you will be required to pay taxes on the difference.

...but wrong here.

In the US, up to $250K in capital gain on the sale of one's principal
residence is exempt from capital gain taxes ($500K for a married couple filing
jointly) provided that the taxpayer has used the home as his principal
residence for at least two years of the five years preceding the sale. So
unless the parents sell the home to him at *waaaay* below market value, he's
not likely to owe any capital gains taxes when he sells it.

Altogether, most people consider this a very bad idea.

No argument there.