USA Adding parents to a real estate deed

[Stevie]

I have a rental property that I own for which the income is going to my parents to help them out financially. My parents have essentially taken on the rental property as their own (they are paying for the upkeep and the mortgage) in return for the income from the property.

I'm considering gifting part of or all of the house to my parents so they take on part of or all of the income tax from the rental property since they are in a lower tax bracket than me.

1. What are the tax implications for me and for my parents in doing something like this?

2. Are there other (better) ways to achieve this goal besides gifting it?

thanks in advance!

 

[kirby]

i think there are these considerations that have to be factored in too:

Let's say you gift it all to mom and dad. You figure when they both pass you get it back anyway. Mom passes and dad meets up with some golddigger. He acts silly and deeds it all to her. There goes your property. I know a few people where this has happened.

Mom and dad qualify before the gift for medicaid. After the gift, they don't.