Gus coaches several developing professional tennis players as an employee of the Central Tennis Training Camp (CTTC). In May 2019, 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. In September 2019, CTTC paid Teresa $50,000 to drop the com-plaint 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 be allowed as a tax deduction to CTTC?