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Question 9 of 15. would be added to the basis of the land. Which of the following is NOT a requirement a farmer must satisfy

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Question 9 of 15. would be added to the basis of the land. Which of the following is NOT a requirement a farmer must satisfy to make this Farmers may elect to deduct certain soil or water conservation expenses that are otherwise capital expenses which election? Expenses must be allocable to land actually used in farming. Expenses must be consistent with a plan approved by the USDA or a comparable state agency. The farmer must cultivate, operate, or manage a farm for profit, as either an owner or a tenant. Expenses must include the draining and filling of wetlands as well as the preparation of lands for irrigation. Mark for follow up 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. un

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