1)Ed travels from one construction site to another pursuing his work as an insulator. Because of family problems and being on the road so much, Ed overlooked filing his 2010 tax return. Ed hasn't filed any returns since 2010 because he is afraid the IRS will find the missed returns and put him in jail and he won't be able to support his family. Ed carefully makes sure that his employers withhold more income tax than is necessary. Ed knows for certain that if he filed the late returns he would get a tax refund for each of the years. Has Ed evaded the income tax? Explain.

2)Sidney owns unimproved land in Chicago, Illinois. In 2007, Sidney leased the land for 10 years to the U-Store-It Storage Company. The lease terms require annual lease payments of $12,000 that are paid at the beginning of each year. U-Store-It immediately constructed a storage facility on the leased land. The storage facility building was worth $105,000 when it was constructed. In 2017, the lease expires and legal ownership of the building reverts to Sidney. The building is worth $125,000 when the lease expires. Sidney has reported the lease income annually, but will not report any income from the improvements the lessee made to the building. Explain in terms of the income tax concepts why Sidney has reported his income in this manner.

3)Kiki fell asleep one night while driving home from work and severely damaged her car. Repairs to the car cost $4,600. Her insurance company reimbursed her for $4,100 of the repairs. Has Kiki realized a loss? Under what conditions can she deduct the loss? You need to search the Itemized deduction to answer this question.