Donavan & Rex Landscaping is a Limited Liability Company (LLC). How does the tax benefit rule apply to Donavan & Rex in the following transactions: In 2018, Donovan & Rex paid Liz $5,000 for referring a client. The deal fell through, and in 2019, Liz refunded the $5,000 to the LLC In 2018, Donovan and Rex paid a title company $400 for services in connection with a title search. Because the title company was negligent, the LLC incurred some additional costs in acquiring the building. In 2019, the title company refunded the $400 fee to Donovan and Rex.