26 USC § 1241 - Cancellation of lease or distributor’s agreement

---
identifier: "/us/usc/t26/s1241"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 1241 - Cancellation of lease or distributor’s agreement"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "1241"
section_name: "Cancellation of lease or distributor’s agreement"
chapter_number: 1
chapter_name: "NORMAL TAXES AND SURTAXES"
subchapter_number: "P"
subchapter_name: "Capital Gains and Losses"
part_number: "IV"
part_name: "SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES"
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. 333.)"
---


# § 1241. Cancellation of lease or distributor’s agreement

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.

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**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 333.)