These are NOT losses to be written off ... you only get to deduct the expense when it is actually paid out not when you pay it into the escrow account. What you do have is a "negative cash flow" situation and on the Sch E you will enter the rent you acutually got and the expenses you actually paid. The full mortgage payment including the increase for the escrow are not deductible on the Sch E as such ... instead you can deduct the actual insurance & taxes paid along with the mortgage interst. The cost of the home must be depreciated as the IRS requires.
So even though you show a monthly "loss" on the books it will not look the same on the tax return. The Sch E may show a loss if the rent taken in is less than the total of all the allowed expenses ... please review the Sch E carefully to see how this is calculated.
The IRS pub 527 has all the rules : https://www.irs.gov/pub/irs-pdf/p527.pdf
