# 26 U.S.C. § 109: Improvements by lessee on lessor’s property

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s109>. Cite pinpoints as 26 U.S.C. § 109(a)(1).

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.

## Regulations

- [Treas. Reg. § 1.109-1](/26/reg/1.109-1.md): Exclusion from gross income of lessor of real property of value of improvements erected by lessee. (interprets § 109)

## Leading cases

- [Tobias v. Commissioner, 40 T.C. 84 (1963)](https://www.courtlistener.com/opinion/4701541/tobias-v-commissioner/)

## Connections

Cites: none

Cited by: § 1019 Property on which lessee has made improvements

Derived from: 1939 § 22(b)(11)-(14)

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 33