The IRS challenged a group of individuals who rented their homes to an S corporation (owned by them) for meetings and deducted the rental expenses. The IRS stated that the taxpayers hadn’t substantiated all of the meetings and didn’t present written documentation. But the U.S. Tax Court sided with the taxpayers, at least in part. It found they were entitled to deduct rental expenses for some meetings. However, in another disputed issue, the court ruled the taxpayers weren’t allowed to deduct the S corp’s advertising costs for excess marketing fees due to a lack of substantiation. (TC Memo 2023-105)