When filing a tax return where do you include expenses for searching for new investment?

[Ruth Ann Morris]

I sold a duplex in Florida in December with the idea of turning the profit into two new rental places in Sioux Falls before the end of the year.  It didn't happen.  I now have expenses from the search (inspection fees, airline tickets and rental car expenses) that I am not sure where to put because they happened in December.  I did eventually close on two places in February but the costs straddle two tax years.  Can I count them in the costs from the place I sold to buy the new place?  I know I should have done a 1031 exchange but I wasn't sure how to do that and it was difficult to orchestrate while living out of country...