Depreciation

What is the name of your state? MA

My parents are transferring a second home to us in consideration of less than 100.00 on the deed.
What tax issues if any will they have since they have claimed depreciation value on their tax returns for the past 4 years?
Is there a better way to transfer the house to us?

They have to file a gift tax return -- form 709. Their adjusted basis is the original cost - allowed depreciation. Your basis is the same as their adjusted basis. When you sell the house, you'll pay taxes on the gain unless you can exclude the gain for other reasons.