Rental Property Taxes

[Mario Baritelli]

Hello, I need assistance here in figuring out if a potential rental property would benefit any of the two parties involved.

I am looking into buying a rental property with my parents (50/50) in the near future. They would live there and pay me rent for 1-2 years and then they are retiring and moving to Florida and we will continue renting it out after they have moved.

Currently my parents income is greater than $150K, but once they retire, it is expected that it will go under the threshold of $150K. On the other hand, I am single and my MAGI is under the $150K now, but it is expected that it will rise to over $150K once married/wage increases. 

Let's assume that there will be a loss on paper when filing taxes due to the depreciation.

Can anyone explain the tax advantages/disadvantages a rental property would have for the both of us?

Also, what would forming an LLC accomplish both for taxes/any other purpose?

Thanks in advance!