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Disaster Assistance Self-Study - Knowledge Check Answers

Which of the following is not information needed to support a claim of casualty loss:

A. The type of casualty
B. The loss was a direct result of the casualty
C. In what city the property was purchased
D. That you were the owner of the property

The correct answer is C. In what city the property was purchased.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements, but they must first subtract how much money?

A.  $100
B.  $200
C.  $300
D.  $400

(Exception - for tax year 2005 losses attributed to Hurricanes Katrina, Rita and Wilma).

The correct answer is A. $100.

What must you first determine in order to determine a casualty loss?

A.  Depreciated value of the asset lost or damaged
B.  Fair market value of the asset lost or damaged
C.  Value when new of the asset lost or damaged
D.  Replacement value of the asset lost or damaged

The correct answer is B. Fair market value of the asset lost or damaged.

If located in a Federally Declared Disaster Area, you can postpone any "recognized" gain on your main home if you buy a new home within how many years of the end of the year the disaster occurred?

A.  One year
B.  Two years
C.  Three years
D.  Four years

(Exception - However, for property that was involuntarily converted after August 24, 2005 as a result of Hurricane Katrina, a 5 year replacement period applies if substantially all of use of the replacement property is in the Hurricane Katrina disaster area).

The correct answer is D. Four years.

You will have a gain if you receive reimbursement in excess of the

A.  Adjusted basis of the damaged or destroyed property
B.  Fair market value of the damaged or destroyed property
C.  Initial cost of the damaged or destroyed property
D.  Current value of the damaged or destroyed property

The correct answer is A. Adjusted basis of the damaged or destroyed property.

Kelly’s Blue Book is a good source of the current fair market value of most vehicles on the road. (True or False)

The correct answer is True.

Generally, which of the following is not a qualified disaster?

A.  A disaster that results from a terrorist or military action.
B.  A federally declared disaster.
C.  A disaster resulting from an accident involving a common carrier.
D.  An accident involving a burst city water main.

The correct answer is D. An accident involving a burst city water main.

Post-disaster relief grants received under Disaster Relief and Emergency Assistance Act are not includable in your income if the grant payments are made to help you meet your necessary expenses. (True or False)

The correct answer is True.

Which of the following is a common psychological reaction to a major disaster?

A.  Elation or euphoria
B.  Normal startle response
C.  Calm contentment
D.  Fear of being alone

The correct answer is D. Fear of being alone.

Many of the feelings associated with a disaster can last weeks, months or even years. (True or False)

The correct answer is True.

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Page Last Reviewed or Updated: 07-Aug-2015