If you are considered a real estate professional and filing a Schedule C, you can deduct the taxes and insurance. If you are not, you must wait until you sell the property.
Since this was purchased as an investment to fix and resell, you add the carrying costs including mortgage interest, property taxes and rehab expenses to the basis of the property. When you sell it, all of these costs (and others from the purchase) become part of the adjusted basis for determining gain or loss on the property. Property taxes are added to the basis and are not deductible on Schedule A since they are considered a business expense, not a personal one, because of the status as an investment property.
Next year you will report the sale under the investment section unless you are considered a real estate professional; if you need directions at that time, please post a new question. Until the property is sold, you do not report any expenses from the purchase or updates you have completed except as noted above for real estate professionals.
