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I have a 80 kz1000 g that I am lowering and putting a larger rear wheel on. I am using body work off of a 76 model. What kind of brake light would work good to mount under the tail piece and look good?

The 76 had a two piece inner fender. In the front was plastic and in the rear was a chromed piece that fit under the tail piece. You will need a 76 inner fender. It is different than a Z1 inner fender even though it looks pretty much the same. Which one you need depends on what year frame you have. Anyway, the plastic inner fender keeps road crud from flying back and making a mess. As far as the chrome steel fender, many folks get rid of it and make an inner fender that fits up flush against the tail piece to keep crud 'n mud from filling the tail piece. It is also a good way to mount a tail light. A "cat's eye" tail light fits fairly well. JP Cycles and other Harley type parts sellers have lots of different styles. I will attach a pic of one of my bikes... it isn't a great pic but you will get the idea.