What is being done is your parents are still the owners and MUST record all the income and related rental property expenses.
They are gifting to you their rights to the rental income.
They are allowed to give up to $14k per person per year without any tax impact (2 parents can gift up to $28k). If you give a gift valued at more than $14k to any one person or trust, you need to file Form 709, United States Gift (and Generation Skipping Transfer) Tax Return. This form is not supported by Turbo Tax as it does not impact your income taxes, it impacts your Estate Taxes and will reduce the tax free estate.
https://www.irs.gov/forms-pubs/about-form-709-united-states-gift-and-generation-skipping-transfer-ta...
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