Cases: Gray v. Commissioner, 71 T.C. 95 (1978); Peerless Steel Equipment Co. v. Commissioner, T.C. Memo. 1967-181; McEnery v. Commissioner, T.C. Memo. 1967-213
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.