Assume the home’s unadjusted basis is $500,000 and the land portion is valued at $200,000. If the business use of the home is 10% then the UBIA of the home office would be $30,000 (($500,000 - $200,000) x 10%). 2.5% of the $30,000 would be only $750 and that would increase the 199A deduction by only $150.
See David's explanation and answer in a similar discussion involving home office deductions and UBIA. @PremierUser
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