Question $10$ of $15.$

What is the limitation on the soil and water conservation expense deduction a farmer may claim each year?

$10\%$ of gross ordinary income from farming plus gains from the sale of livestock and other assets used in the production of farm income.

$10\%$ of net income from all farm sources plus net gain from the sale of livestock held for draft, dairy, breeding, or sporting purposes.

$25\%$ of gross ordinary income from farming plus gains from the sale of livestock held for draft, dairy, breeding, or sporting purposes.

$25\%$ of net income reported on Schedule F plus net gain from the sale of livestock and other assets used in the production of farm income.