Title 26 — Internal Revenue CodeRelease 119-73
§1241 Cancellation of lease or distributor’s agreement
Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter P— - Capital Gains and Losses › Part PART IV— - SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES › § 1241
Summary
Count payments to a tenant or to a distributor with substantial capital investment for ending a lease or distributorship agreement as money received for selling that lease or agreement.
Full Legal Text
Title 26, §1241
Internal Revenue Code — Source: USLM XML via OLRC
Amounts received by a lessee for the cancellation of a lease, or by a distributor of goods for the cancellation of a distributor’s agreement (if the distributor has a substantial capital investment in the distributorship), shall be considered as amounts received in exchange for such lease or agreement.
Reference
Citations & Metadata
Citation
26 U.S.C. § 1241
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73