---
kind: "section"
citation: "26 U.S.C. § 1241"
title: "26"
title_heading: "Internal Revenue Code"
number: "1241"
heading: "Cancellation of lease or distributor’s agreement"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/1241"
units:
  - "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. 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.


## Source credit

(Aug. 16, 1954, ch. 736, 68A Stat. 333.)