Title 26, Internal Revenue CodeRelease 119-102
§1241 Cancellation of Lease or Distributor’s Agreement
Title 26 › 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
Payments for canceled leases or distributor agreements, when a distributor invested a lot, count as payment 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
Aug 21, 2026
Release point: 119-102