re: Consolidating estate of parents in declining health

Check your parents latest tax returns. More than likely there should be a Schedule C for the business. If you liquidate the business then the accountant will account for any gain/loss on Schedule C for the next tax return.

In regards to your father, since his health is poor there is really no point to gifting his assets to qualify him for medicaid since most states have a five year look back period. Medical care is expensive and can eat up a person's assets fairly quickly.

Does your mom have a will and/or trust right now? If so, how are the assets owned (e.g. Jointly)? Is there any life insurance? If so, is there a life insurance trust?