Title 26 — Internal Revenue CodeRelease 119-73not60
§1241 Cancellation of Lease or Distributor’s Agreement
Title 26 › Subtitle Subtitle A— Income Taxes › Chapter 1— NORMAL TAXES AND SURTAXES › Subchapter P— Capital Gains and Losses › Part IV— SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES › § 1241
Summary
Treats payments a tenant gets for canceling a lease, and payments a distributor gets for canceling a distributor agreement (only if the distributor made a large capital investment in the distributorship), as amounts received in exchange for 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 5, 2026
Release point: 119-73not60