Are my legal and travel expenses tax deductible (attorney fees, court costs, flights, hotel, meals, etc.)? ======>>I guess It depends. As an investor who purchases real estate as an investment, you are not in the business of buying and selling vacant land on a continuous and extended basis. Rather, you purchase land and usually hold on to it for some time in the hope that it will appreciate in value to resell.
Since you are not engaged in a business, you are not entitled to business deductions and do not file Sch C UNLIKE a dealer. However, many investment expenses are deductible as personal itemized deductions on Sch A. These expenses are an ordinary tax deduction that results in tax benefits at your regular income tax rate; carrying costs such asbiz/job related legal and accounting fees, insurance,flight, and travel expenses are also deductible on Sch A.Laega/court fees fall into a gray area of tax law. Sometimes they're deductible, and sometimes they're not. Whether they're allowable – and where and how you deduct them – usually depend on why you retained the lawyer and what he did for you. Fees incurred for personal reasons are not typically deductible However, they are deductible only as miscellaneous itemized deductions. This means that they can be deducted only if, and to the extent, they exceed 2% of your AGI; You may deduct 50% of costs for meals while traveling on business.so UNLESS you itemize deductions on Sch A, you won't be able to deduct any of the expenses you incur from owning vacant land. In this event, you should elect to add these expenses to your land's cost basis. This will reduce any taxable profit you earn when you sell the property.
If they are, how are they reported on my personal tax return?=====>>>>>>>as said , you need to itemize deductions and report it on Sch A on line 21 /f2106