Tax Court grants business deduction for charity parties

One of two sisters who owned a 50% interest each in a limited liability company taxed as a partnership was challenged by the IRS on a variety of deductions claimed for costs expended personally to help sustain the financially precarious business.  Among the deductions challenged were business expenses and charitable contributions claimed by the business, called “Stuff,” a boutique that had sold handmade and small-batch specialty goods since 1996.