Value Insights this week launched a web-based, artificial intelligence-backed application that identifies, substantiates, valuates, and documents clients’ non-cash contributions with a simple click of a camera.
Designed for accounting professionals and their clients, the solution was launched during CPA Practice Advisor‘s flagship online CPE event, Ensuring Success, which was held Dec. 10 and 11. Todd Gray, CPA, founder and CEO of Value Insights, was a participant in this week’s panel discussions.
Gray said the biggest problem with non-cash contributions is that accounting professionals fundamentally lack an easy and effective way to identify, value, and document non-cash charitable contributions.
The Value Insights app enables CPAs and tax professionals to prepare more accurate, valuable, and better supported income tax returns—especially Form 8283, Noncash Charitable Contributions—for their clients.
The taxpayer is the app user, and it’s only the underlying reporting that goes to the tax preparer, Gray said.
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“The taxpayer is responsible for taking the photo, inputting charitable contribution information, and providing valuation reports to the tax preparer. The responsibility and accountability is on the client, not you, as the preparer, to gather the relevant information,” he said in an email to CPA Practice Advisor. “At the end of the year, you would receive the valuation reports of the contributions, along with the client-provided contribution slips from the charity. Thus, a more valuable tax return to prepare and charge more for.”
Currently, each new user receives 10 free credits to start; as such, by advising your clients to use the app, you will generate value for your clients before any purchase of additional credits, Gray added.
At account set-up, the user specifies their filing status and estimated federal tax rate and state tax rate. This will enable Value Insights to calculate the estimated current tax savings generated by each appraisal report submitted per photo.
As finalized appraisals are approved, there is a running total for the estimated tax savings year to date, according to Gray.
Each credit accounts for one qualifying valuation appraisal. The finalized appraisal report is then available for printing or download by the user.
The intention is to provide a reasonable, rational, and defendable valuation appraisal report to couple with the underlying charity receipt for each contribution made, he said.
“As a veteran CPA, I want us to realize the value and power of charity!” Gray wrote on LinkedIn earlier this week.
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