Stout was engaged by the owner of a skilled nursing facility to assist with the owner's gift tax plan. The tax plan involved the formation of an S-corporation that held the operations of two entities providing subacute nursing care and rehabilitation services as well as a related management entity. Stout worked with management to develop pro forma historical and projected financial statements for the newly formed entity and determined the fair market value using a combination of the Discounted Cash Flow Method and Guideline Public Company Method. We assessed appropriate valuation discounts on the gifted noncontrolling interest and documented our findings in an IRS-compliant narrative report.