There are two basic forms of tracing: item tracing and value tracing. Item tracing is utilized for non-cash assets whereas value tracing follows cash assets. Several methods are utilized under value tracing including the clearinghouse method, identical sum inference, the minimum sum balance method, the community out first rule, and the pro-rata approach. Item tracing traces a non-cash asset back to its inception of title to determine its permanent character. Value tracing on
