Question
Brantley is self-employed and files a Schedule C. His business is a qualified business for calculation of QBI. He had 86,000 in taxable business income
Brantley is self-employed and files a Schedule C. His business is a qualified business for calculation of QBI. He had 86,000 in taxable business income on his Schedule C. On 10/30/2020, Brantley sold some office equipment for $6,000 which he purchased on 04/01/2017 for a cost of $7,500. The office equipment is being depreciated over 7-year MACRS half-life convention. Brantley has no other qualified businesses. His taxable income for the income limitation is $102,000.
a. What is the Section 1245 depreciation recapture (if any) on the sale of office equipment?
b. What is the self-employment deduction on the income from Brantley's business?
c. What is Brantley's Qualified Business Income (QBI) for Form 8995?
d. What is Brantley's Qualified Business Income Deduction (QBID) for Form 8995?
e. Assuming there are no other items for Form 8995, what amount(s) will be entered on line 13 of Form 1040?
f. Assuming there are no other items for Schedule 1, what amount(s) will be entered on line 8 of Form 1040?
g. Assuming there are other items for Schedule 1, what amount(s) will be entered on line 10a of Form 1040?
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