---
type: "LegalText"
title: "26 U.S.C. § 1241"
description: "Cancellation of lease or distributor’s agreement"
jurisdiction: "us"
corpus: "united_states_code"
kind: "code_section"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
chapter_number: "1"
chapter_name: "NORMAL TAXES AND SURTAXES"
section: "1241"
citation: "26 U.S.C. § 1241"
status: "current"
release_point: "119-100"
release_date: "2026-06-26"
source: "official"
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
source_identifier: "/us/usc/t26/s1241"
source_file: "data/legal/raw/us/code/title-26/usc26.xml"
source_hash: "a1f8e45967db77de25de218dfe0436b03c2c5716e15def84a1f2d3edfe178e27"
raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
text_hash: "2cf47bc922ca7f7e430ffb25209d0258deeb16429ecd464d18fc8ced4079d461"
retrieved_at: "2026-07-04"
confidence: "official"
tags: ["legal", "us-code"]
---

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

## Text

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.

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