Calculation Accuracy Validation
Fully reproducible validation study confirms 100% accuracy across Canadian and US tax calculations
Executive Summary
Validated: December 2025 | Tax Year: 2024
We tested PrivateACB's tax calculations against manual calculations performed using official tax authority methodologies. The full test data and methodology are published so anyone can verify the results.
Result: All calculations matched exactly. Zero discrepancies across 54 transactions, 2 jurisdictions, and 4 calculation methods.
| Jurisdiction | Transactions | Methods Tested | Accuracy |
|---|---|---|---|
| 🇨🇦 Canada | 42 | ACB (Average Cost Base) | ✓ 100% |
| 🇺🇸 United States | 12 | FIFO, LIFO, HIFO | ✓ 100% |
Canada Validation
Test Overview
Results by Asset
| Asset | Transactions | Capital Gains | Superficial Losses | Income | Status |
|---|---|---|---|---|---|
| Bitcoin (BTC) | 17 | $455.13 | $7,420.69 | $9,177.50 | ✓ Verified |
| Ethereum (ETH) | 14 | $532.76 | $615.79 | $14,855.00 | ✓ Verified |
| Solana (SOL) | 11 | $1,446.02 | $549.33 | $2,200.00 | ✓ Verified |
| TOTAL | 42 | $2,433.91 | $8,585.81 | $26,232.50 | ✓ 100% Match |
Verification Example: SOL Superficial Loss
Transaction: March 20, 2024 — Sell 80 SOL at $115/unit
Repurchase: April 1, 2024 — Buy within 61-day window
Before sale: ACB = $18,265 | Units = 150 | ACB/unit = $121.77
Cost basis: 80 × $121.77 = $9,741.33
Proceeds: (80 × $115) - $8 fee = $9,192.00
Loss: $9,192 - $9,741.33 = -$549.33
Manual calculation: $549.33
PrivateACB result: $549.33
Difference: $0.00 — Exact match
Tax Rules Verified
- Superficial loss detection (61-day window: 30 days before + day of + 30 days after)
- Superficial loss application (denied loss added to remaining ACB immediately)
- ACB average cost methodology
- Income events valued at fair market value on receipt
- Proper fee handling (buy fees increase ACB, sell fees reduce proceeds)
United States Validation
Test Overview
The US test demonstrates how lot selection method significantly impacts tax liability. Using identical transactions, we calculated capital gains under all three methods.
Results by Method
| Method | Net Capital Gain | vs FIFO | Tax @ 24% | Savings vs FIFO | Status |
|---|---|---|---|---|---|
| FIFO | $325,305 | — | $78,073 | — | ✓ Verified |
| LIFO | $162,285 | -$163,020 | $38,948 | $39,125 | ✓ Verified |
| HIFO | $157,780 | -$167,525 | $37,867 | $40,206 | ✓ Verified |
Key Finding: Method Choice Matters
In this test scenario, choosing HIFO over FIFO resulted in:
$167,525 less in taxable gains
$40,206 in tax savings (at 24% rate)
Why? FIFO sells oldest lots first ($16,500 cost basis), creating large gains.
HIFO sells highest-cost lots first ($68,000 cost basis), minimizing gains.
Validation Results
| Method | Expected | PrivateACB | Difference | Status |
|---|---|---|---|---|
| FIFO | $325,305 | $325,305 | $0.00 | ✓ PASS |
| LIFO | $162,285 | $162,285 | $0.00 | ✓ PASS |
| HIFO | $157,780 | $157,780 | $0.00 | ✓ PASS |
100% accuracy across all three methods
Verify It Yourself
We publish our test data and methodology so anyone can reproduce the results
- Download PrivateACB (free 30-day trial)
- Import test data (transaction files provided in technical report)
- Run calculations using the appropriate jurisdiction and method
- Compare results against documented expected values
- Verify: All numbers should match exactly
Complete validation study including full transaction datasets, methodology documentation, and verification steps
Important Disclaimers
• This validation study confirms calculation methodology accuracy only — it is not tax advice
• Consult a qualified tax professional for your specific situation
• Tax regulations are subject to change; this study reflects rules in effect for the 2024 tax year
• Individual results depend on accurate data entry and transaction categorization
Last validated: December 2025 | Tax year: 2024 | Jurisdictions: Canada (ACB), United States (FIFO/LIFO/HIFO)
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