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identified the source of the $1,496.69 or any of the beginning
balances in Exhibit 9. Exhibit 9 does not show that they spent
more than $67,611 by April 1, 1987. Exhibit 9 does not properly
apply the direct tracing method. It does not directly trace
petitioner’s separate funds through the commingled accounts to
the specific payments that he seeks to deduct. Exhibit 9 does
not list the balance of each account and the balance of
petitioner’s separate funds computed after each transaction as
required by the direct tracing method. It appears that Belyea
combined petitioner’s five accounts on Exhibit 9. Exhibit 9 does
not directly trace each transaction in each account and show the
community and separate fund balance after each transaction.
Thus, even if Exhibit 9 were fully admitted, petitioner has not
proven that the community funds were in deficit after April 1,
1987.
We conclude that petitioner has not shown that he used his
separate funds to pay his former spouse’s share of mortgage
interest and property taxes for their business properties through
the direct tracing method.
b. Family Expenditure Method
Respondent concedes that the family expenditure method shows
that petitioner used some of his separate funds to pay mortgage
interest and property taxes. Respondent concedes that petitioner
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