Property II Professor Donald J. Kochan Spring 2009 Class March 2009

Today’s Materials Guest Lecturer: Professor Francine Lipman Guest Lecturer: Professor Francine Lipman Please read: Please read: Francine J. Lipman, No More Parking Lots: How the Tax Code Keeps Trees Out of a Tree Museum and Paradise Unpaved, 27 Harv. Envt’l L. Rev 471 (2003) Which will be supplemented during class with a very interesting lecture and powerpoint presentation, with personal real-life experiences with these conservation easements. Conservation Easements Conservation Easements Property Consequences Property Consequences Tax Consequences Tax Consequences

Guest Lecturer Francine J. Lipman Professor of Law Phone: (714) Professor Lipman joined the faculty of Chapman’s George L. Argyros School of Business and Economics in 2001, where she has taught tax and graduate level accounting courses, has received awards for excellence in scholarship, teaching and research, and has been responsible for a substantial Volunteer Income Tax Assistance Program. Professor Lipman moved to the School of Law in 2003, while continuing to teach in the School of Business and Economics. Professor Lipman graduated from N.Y.U. School of Law with an LL.M. in Taxation where she was a Tax Law Review Scholar and served as a Graduate Editor on the Tax Law Review. She received her Juris Doctor from U.C. Davis where she served as Editor in Chief of the U.C. Davis Law Review and was a member of the Order of the Coif. Professor Lipman has an M.B.A. and is a C.P.A. licensed in California. Prior to entering academia, Professor Lipman practiced in the tax department of Arthur Young & Company and as an attorney with the law firms of O'Melveny & Myers LLP and Irell & Manella LLP. She has written extensively on tax and accounting topics for legal and accounting periodicals, including Wisconsin Law Review, American University Law Review, Nevada Law Journal, Florida Tax Review, Virginia Tax Review, Harvard Environmental Law Review, Harvard Latino Law Review, Harvard Journal on Legislation, The Tax Lawyer, The Practical Tax Lawyer, Taxes and Tax Notes. Courses Taught: Federal Income Taxation and Corporate Tax

Primary Reading Assignment Please download and read the FULL text from the following: No More Parking Lots: How the Tax Code Keeps Trees Out of a Tree Museum and Paradise Unpaved Francine J. Lipman Francine J. Lipman Chapman University - School of Law Harvard Environmental Law Review, Vol. 27, 2003 Harvard Environmental Law Review, Vol. 27, 2003 Francine J. Lipman Harvard Environmental Law Review, Vol. 27, 2003 Abstract: Conditions are ripe for harvesting tax benefits provided to private owners of forest land. As our exploding population paves more paradise, government agencies provide economic incentives to motivate private landowners to engage in conservation activities. With real estate values escalating to unprecedented highs and individual marginal income tax rates and stock market values continuing to decline, now may be a fruitful time to capture inflated real estate values and enhanced tax benefits. This article analyzes five different tax incentives that Congress enacted to encourage forest landowners to engage in conservation activities. The tax provisions presented and analyzed are the reforestation expenditure amortization deduction, the reforestation tax credit, preferential treatment for gains and losses from timber sales and the conservation easement. The article concludes with a hypothetical example of how these tax incentives can mitigate the differences between a private landowner's economic interests and the public goal of preservation.

State of California Conservation Easements Registry

Model Conservation Easement from the EPA documents/A2e-ModelLand.pdf documents/A2e-ModelLand.pdf documents/A2e-ModelLand.pdf documents/A2e-ModelLand.pdf

Historic Preservation and Conservation Easements from the National Parks Service please read: t.htm t.htm t.htm t.htm

Selected Concepts for Discussion Incentives Incentives Eligibility Issues Eligibility Issues Transactionally, how does the owner satisfy her preferences? Transactionally, how does the owner satisfy her preferences? Who is the dominant and who is the servient? Who is the dominant and who is the servient? Straw Man Issues Straw Man Issues How do you make it run with the land? How do you make it run with the land? Outcomes Outcomes Economic Economic Environmental Environmental Taxation Taxation Property Values Property Values Ancillary positive externalities on contingent properties Ancillary positive externalities on contingent properties Maintenance Obligations Maintenance Obligations Enforcement Issues/Monitoring Issues/Reporting Issues Enforcement Issues/Monitoring Issues/Reporting Issues