Donavan & Rex Landscaping is a limited Liability Company $($LLC$).$ How does that tax benefit rule apply to Donavan & Rex in the following transactions:

$1.$ In $2002,$ Donavan & Rex paid $$5000$ for referring a client. The details fell through, and in $2022,$ Liz refunded the $$5000$ to the LLC

$2.$ In $2002,$ Donavan and Rex paid a little company $$400$ for services in connection with a little search. Because the tittle company was negligent, the LLC incurred some additional costs in acquiring the building. In $2023,$ the little company refunded the $$400$ fee to Donavan and Rex.