Failed Small Business Acquisition Legal Expenses

[MDT3]

I am an independent technology consultant looking to transition to business owner.  I attempted to purchase an existing small business & hired an M&A attorney to provide legal advice & prepare acquisition documents.  However, negotiations with the Seller failed & due to personal reasons I will not be able to purse another  acquisition opportunity for some time.  I incurred $7,500 in legal expenses during the acquisition process.  I know that if I had been successful in the acquisition, these legal expenses would be capitalized in my new business.  However, since the deal failed I have no legal entity to capitalize the expenses against.  Are any of these expenses deductible on my personal taxes?

[AliciaP1]

No, unfortunately, your legal fees to start a business that didn't actually start that you incurred in 2022 are not tax deductible.