Deductions for payment to a developer or syndicator for their covenants not to compete with a specific project are never allowed according to IRS rules.

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Deductions for payment to a developer or syndicator for their covenants not to compete may be allowed under certain circumstances, as long as the payment is considered to be an ordinary and necessary business expense. However, the deductibility of these payments may be subject to specific rules and limitations imposed by the IRS.

Deductions for Payment to a Developer or Syndicator for Their