Brantley is self-employed and files Schedule C. His business is a qualified business for calculation of QBI. He had $96,000 in taxable business income on his Schedule C. On 10/30/2020, Brantley sold some office equipment for $7,080 which he purchased on 04/01/2017 for a cost of $8,850. The office equipment is being depreciated over 7-year MACRS half-year convention. Brantley has no other qualified businesses. His taxable income for the income limitation is $102,000. (Hint: it will be useful to use information from Chapter 7, Form 8995, Schedule 1, and Form 1040 as a guide.) Use Table 6A-1

Required:

1. What is the Section 1245 depreciation recapture (if any) on the sale of the office equipment?
2. What is the self-employment deduction on the income from Brantleys business?
3. What is Brantleys Qualified Business Income (QBI) for Form 8995?
4. What is Brantleys Qualified Business Income Deduction (QBID) for Form 8995?
5. Assuming there are no other items for Form 8995, what amount(s) will be entered on Line 13 of Form 1040?
6. Assuming there are no other items for Schedule 1, what amount(s) will be entered on Line 8 of Form 1040?
7. Assuming there are no other items for Schedule 1, what amount(s) will be entered on Line 10a of Form 1040?