Prepaid items are not deductible until they are paid out of the escrow account they are put into.
For example, generally homeowners insurance, and # of months of real estate taxes and mortgage interest are prepaid and put into an escrow account. It is not deductible going into the escrow account. They may be deductible when paid out of the escrow account, but will be reported to you as paid when going into the end of the year on tax reporting documents.
