In 2017 Johnson University purchased a house that was one mile from the university. A small portion of the university is visible from a window. The house had a market value of $500,000. In 2017 Johnson was trying to hire Eugene Turner as President of the University. The university managed, after several overnight trips, to convince him to take the job for $350,000 annually. The Universitys trustees were dissatisfied with previous president who lived away from campus and treated the job as only a 40-hour per week job. Thus, the trustees required Mr. Turner to live in the new house (at no charge). Mr. Turner has participated in the university and community activities for three years. He and his family have lived in the house since accepting the position.

identify applicable tax law related to the facts and tax considerations, and communicate your reasoning and recommendation