Questions: I am looking to do an if function formula for the if this 8:30 is over 8:00 then this 8.50 should be 8.00

Try This:

=IF(8:30/8:00, 8:00)

You can use relative cell reference for the first argument if there are rows and columns you want to input.

Also, make sure the number type is set to time! Home tab - Number Group - drop down arrow - time