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Zofia is self-employed, files a Schedule C, and owns a business that is a qualified business for calculation of QBI. Zofia had $98,000 in taxable
Zofia is self-employed, files a Schedule C, and owns a business that is a qualified business for calculation of QBI. Zofia had $98,000 in taxable business income on Schedule C. On 10/30/2021, Zofia sold some office equipment for $7,140 that was purchased on 04/01/2018 for a cost of $8,925. The office equipment is being depreciated over 7-year MACRS half-year convention. Zofia has no other qualified businesses. Zofia's 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: What is the Section 1245 depreciation recapture (if any) on the sale of the office equipment? What is the self-employment deduction on the income from Zofias business? What is Zofias Qualified Business Income (QBI) for Form 8995? What is Zofias Qualified Business Income Deduction (QBID) for Form 8995? Assuming there are no other items for Form 8995, what amount(s) will be entered on Line 13 of Form 1040? Assuming there are no other items for Schedule 1, what amount(s) will be entered on Line 8 of Form 1040? Assuming there are no other items for Schedule 1, what amount(s) will be entered on Line 10a of Form 1040
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