If this failed property acquisition relates to an existing real estate business, then you may report the legal fees on Schedule E for that business.
However, if this was a new venture (not an existing business), you may wish to review this TurboTax article to determine if these expenses are deductible: Can I deduct legal fees on my taxes?
Personal legal expenses relating to real estate purchases are not generally deductible.
See also: IRS Pub 529 Legal Expenses
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