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Our AI-Powered Process: How We Create an IRS-Compliant Report

Nov 2024 6 min read

Transparency is a core part of our service. We want you to feel confident in the report you receive. Here’s a look at how our system works behind the scenes.

Step 1: Guided Data Collection

You provide the foundation. Our software walks you through providing essential property details and a comprehensive photo checklist. This user-guided approach ensures we have the specific, real-world data needed for an accurate study.

Step 2: AI Analysis & Classification

This is where our technology shines. Our AI model, which has been trained on the IRS's own Audit Techniques Guide and a vast database of property data, gets to work. It analyzes your photos to identify hundreds of individual components, from the type of flooring to the specific model of the HVAC unit. It then cross-references this with national cost databases to assign a defensible value to each item and classifies it into the correct depreciation schedule (5, 7, 15, or 27.5-year).

Step 3: Automated Report Generation

Once the analysis is complete, our platform automatically compiles everything into a comprehensive, audit-ready report. It includes a summary of findings, detailed schedules of all classified assets, and a clear explanation of the methodology used—everything your tax preparer needs to file correctly.