# 26 U.S.C. § 1241: Cancellation of lease or distributor’s agreement

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s1241>. Cite pinpoints as 26 U.S.C. § 1241(a)(1).

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.

## Regulations

- [Treas. Reg. § 1.1241-1](/26/reg/1.1241-1.md): Cancellation of lease or distributor's agreement. (interprets § 1241)

## Leading cases

- [Gray v. Commissioner, 71 T.C. 95 (1978)](https://www.courtlistener.com/opinion/4704940/gray-v-commissioner/)
- [Peerless Steel Equipment Co. v. Commissioner, T.C. Memo. 1967-181](https://www.courtlistener.com/opinion/4810641/peerless-steel-equipment-co-v-commissioner/)
- [McEnery v. Commissioner, T.C. Memo. 1967-213](https://www.courtlistener.com/opinion/4826483/mcenery-v-commissioner/)

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 333