Escrowed amount are not deductible or capitalized for taxes and booked against equity. 

@Levi T., yes I'm definitely going to reset and begin to analyze more deals.

In other words, you may not be able to deduct any property taxes in 2022"

Now, depending on your income and after all of the wonderful tax deductions, write-offs, etc that real estate investors can leverage to 'maximize their after tax wealth' you likely will not end up paying that $2,000.

You are correct that the loss of rents coverage is  most likely taxable but if you work with a good tax accountant or a tax attorney they can help to navigate the deductions that you can take from the loss of rents payout to lower your tax liability.  

Hi, I own an unimproved lot and capitalize HOA fees and property taxes every year to increase the property basis by amending my taxes and adding something like the following “magic” text as required by the IRS:“For tax year 2021, taxpayer hereby elects under Code Section 266 and IRS Regulations 1.266-1 to capitalize, rather than deduct HOA fees paid in the amount of $#### and $#### property taxes as carrying costs on a vacant lot that is unimproved and non-productive bare land.

Since technically my company was being paid the cost of the rehab & management fee, although I had deductions for labor & materials for federal taxation, the LOCAL government charged a 2% tax on the GROSS revenue.

It's not been particularly good cash-flow, since I've been plowing everything back into RE, but I've done quite nicely on equity gains & tax deductions. 

Can I take these as deductions from my taxes since this money is invested in starting a business, or would it count as a personal expense and can't be written off? 

@Edward Dawson @Levi Hall who all have invested with RTR for many years and have multiple properties along with checking out the discussions that Account Closed has provided.