1. Look at the Form 1040 you prepared for Andrew Martinez. What is the amount on Form 1040, Line 40?

a. $ 11,642.
b. $ 11,657.
c. $ 5,350. 
d. $ 10,700.

2. Look at the Form 1040 you prepared for Andrew Martinez. What is the amount on Form 1040, Line 73a?

A. $ 2,173.
B. $ 1,228.
C. $ 2,710. 
D. $ 2,903.

3. A theft in the taking and removing of money or property with the intent to deprive the owner of it. Theft includes the taking of money or property by the following means, except

A. Blackmail and extortion.
B. Money loaned to a friend who did not pay you back.
C. Kidnapping for ransom.
D. Burglary and robbery. 

4. The taking of money or property through fraud or misrepresentation is theft if it is illegal under state and local law.                       

True False

5. Loss of property due to progressive deterioration is deductible as a casualty loss.                       

True False

6. A casualty loss is deductible if the damage or destruction is caused by accidentally breaking articles such as glassware or china under normal conditions.                       

True False

7. The simple disappearance of money or property is not theft. A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. The diamond falls from the ring and is never found. The loss of the diamond

A. Is not a casualty because the disappearance was a simple disappearance.
B. Is not a casualty because the event was not sudden , unexpected or unusual.
C. Is a casualty because the event was sudden, unexpected, or unusual.
D. None of the above. 

8. You bought a new chair 4 years ago for $300. In April, a fire destroyed the chair. You estimate that it would cost $500 to replace it. If you had sold the chair before the fire, you estimate that you could have received only $100 for it because it was 4 years old. The chair was not insured. Your loss is

A. $ 500.
B. $ 300.
C. $ 400.
D. $ 100.

9. Your home was extensively damaged by a tornado. Your loss after reimbursement from your insurance company was $ 10,000. Your employer set up a disaster relief fund for its employees. Employees receiving money from the fund had to use it to rehabilitate or replace their damaged or destroyed property. You received $ 3,000 from the fund and spent the entire amount on repairs to your home. Your casualty loss before applying the deduction limits is

a. $ 3,000.
B. $ 10,000.
C. $ 7,000.
D. $ 6,000.

10. You have a car insurance policy with a $ 500 deductible, because your insurance did not cover the first $ 500 of an auto collision, the $ 500 would be deductible (Subject to the $ 100 and 10% limits).             

True False

11. Several years ago, you purchased silver dollars at face value for $250. This is your adjusted basis in the property. Your silver dollars were stolen this year. The FMV of the coins was $1,500 just before they were stolen, and insurance did not cover them. Your theft loss is

A. $ 1,500.
B. $ 250.
C. $ 850.
D. $ 150.

12. In figuring a casualty loss on personal-use real property, the entire property (including any improvements, such as buildings, trees, and shrubs) is treated as one item. Figure the loss using

A. The decrease in FMV of the entire property.
B. The adjusted basis of the entire property.
C. The smaller of A or B above.
D. None of the above.

13. Do not reduce your casualty loss by insurance payments you receive to cover living expenses in the following situation.

A. You lose the use of your main home because of a casualty.
B. Government authorities do not allow you access to your main home because of a casualty or threat of one.
C. Either of A or B above.
D. None of the above.

14. In December 2008, you had a collision while driving your personal car. Repairs to the car cost $950. You had $100 deductible collision insurance. Your insurance company agreed to reimburse you for the rest of the damages. You casualty loss for 2008 is

A. $ 950.
B. $ 850.
C. $ 100.
D. $ -0-

15. You have a casualty loss if your home is unsafe due to dangerous conditions existing before the disaster.           

True False

16. The cost of restoring landscaping to its original condition after a casualty may indicate the decrease in FMV. You may be able to measure your loss by what you spend on

A. Removing destroyed or damaged trees and shrubs, minus any salvage you receive.
B. Pruning and other measures it takes to preserve damaged trees and shrubs.
C. Replanting necessary to restore the property to its approximate value before the casualty.
D. All of the above.

17. Deductible casualty losses can result from a number of different causes, excluding the following.

A. Mine cave-ins.
B. Terrorist attacks.
C. Vandalism.
D. A fire if your willfully set it, or pay someone else to set it. 

18. A casualty is deductible if the damage or destruction is caused by the following, except

A. A family pet suddenly and unexpectedly damaged a household item.
B. Terrorist attacks.
C. Floods.
D. A car accident if your willful negligence or willful act caused it.

19. A loss resulting from damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual.

A. A casualty loss.
B. A theft loss.
C. A loss of deposit.
D. A sudden loss. 

20. A loss resulting from the taking and removing of money or property with the intent to deprive the owner of it. The taking of property must be illegal under the law of the state where it occurred and it must have been done with criminal intent.

A. A casualty loss.
B. A theft loss.
C. A loss of deposit.
D. A sudden loss.