I$4$: $4-30,$

Luke, who retired this year, lives in a four$-$plex owned by Julie. Luke$$s income decreased when he retired, and he now has difficulty paying his rent. Julie offered to reduce Luke$$s rent if he would agree to mow the lawn, wash windows, and provide other maintenance services. Luke accepted, and Julie reduced the monthly rental from $$650$ to $$300.$ What are the tax issues that should be considered by Luke and Julie?

I$5$: $5-31,$

Mike, a real estate broker in California, recently inherited a farm from his deceased uncle and plans to sell the farm to the first available buyer. His uncle purchased the property $12$ years ago for $$600,000.$ The FMV of the farm on the date of the uncle$$s death was $$500,000.$ Mike sells the farm for $$520,000$ seven months after his uncle$$s death. What tax issues should Mike consider?

I$6$: $6-30$

Gus coaches several developing professional tennis players as an employee of the Central Tennis Training Camp $($CTTC$).$ In May of the current year, his ex$-$girlfriend Teresa, $($a tennis player former client$),$ alleged sexual abuse by Gus and made a complaint against him.

When Gus informed them of the situation, CTTC was disillusioned and concerned over the risk to the camp$$s reputation. Soon after, CTTC paid Teresa $$50,000$ to drop the complaint and to keep the entire matter confidential. CTTC incurred legal costs of $$7,800$ related to the matter. CTTC required Gus to acknowledge $($sign$)$ their intention to terminate his employment if the complaint and its settlement became public. Will the settlement payment and legal fees be allowed as tax deductions to CTTC$?$ Explain.