As this is a loan it is a non taxable event.

paying you could be a deduction for your parents ( expense) but it would be income for you (taxable after $600 i think) .

Depreciation is also an accounting term which shows the declining monetary value of an asset and is used as an expense to reduce taxable income.

Net taxable from rental real estate is generally excluded from UBTI under IRC Sec 512(b)(3).There is a wrinkle -- if the property is debt financed (i.e. mortgaged), the income may be taxable under Sec 514. 

It is really that simple and the rest is using intelligent strategies applicable to tax optimization and reducinug your taxable income through deductions that you get as a real estate business owner. 

Sometimes it’s better to take sec 179 if both bonus and 179 are available to get higher depreciation no.Mine all generate substantial taxable income (also the reason I am interested in IRC 199A).

In general contributions into and distributions out of an entity do not create a taxable event. 

Its a 13+15 on the same taxable in Scarritt Renaissance. 

Most important being if you ever have to take out the rentals form S- corp, there will be a taxable event. 

The depreciation and the expenses reduce the taxable income significantly.