26 USC § 109 - Improvements by lessee on lessor’s property

---
identifier: "/us/usc/t26/s109"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 109 - Improvements by lessee on lessor’s property"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "109"
section_name: "Improvements by lessee on lessor’s property"
chapter_number: 1
chapter_name: "NORMAL TAXES AND SURTAXES"
subchapter_number: "B"
subchapter_name: "Computation of Taxable Income"
part_number: "III"
part_name: "ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Aug. 16, 1954, ch. 736, 68A Stat. 33.)"
---


# § 109. Improvements by lessee on lessor’s property

Gross income does not include income (other than rent) derived by a lessor of real property on the termination of a lease, representing the value of such property attributable to buildings erected or other improvements made by the lessee.

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**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 33.)