Acquisition Costs and Backing out of a Deal

I had a property under contract and added the property to record due diligence expenses against it like legal fees, inspections, and earnest money so I could assign them to that property.

The deal fell apart after the inspection. I got the earnest money back and the legal retainer, which was nice so I am only out the inspection and a few other items.

What is the best way to now “dispose” of the property and make it inactive? I obviously haven’t sold it since I never purchased it.

Is there a better way to handle properties prior to close?