Deducting expenses from failed purchase

[Jim S.]

I recently had a deal fall through as a result of major inspection issues. I had already requested an appraisal + loan application fee + was using an attorney so overall I'll be ~$2k in the hole.

I'm fine with that, better than getting stuck with a money pit for 20 years. My question is can I deduct these expenses somehow?

I have one rental property in Colorado, this purchase was in upstate NY. I intend to buy a different property in upstate NY instead.

Is there a way to either generically write off this loss or  less preferably add to the basis for another subsequent property in same part of upstate NY?