CPA Reducing Schedule C Depreciation amount from 19K to 1,622?

[Amy Konopka]

My CPA Firm has done my taxes for 3 years. Its signed off by someone knowledgeable and worked on by "Tax Managers" and "Tax assistants". 

I operate Recovery Residences and provide furnished properties.  My Company (schedule c) sources/vets occupants ,provides /pays for everything, collects the Guest Fees from Individuals. Handles like any Property Management Company would.  My Company pays me rent, (reported on Schedule E). Schedule E shows little to know expenses except for major repairs.  I have REPS status.  

In 2024 I purchased another home. 
The Company had to purchase $19K  to furnish it.  I would like to depreciate using 179. I reported 19K on line 13. Gave to my accountant. Provided receipts. I'm buying another home, and need as much as possible on Line 13 as an add back for Lending 

At first he disregarded the entire amount and put in last years carried forward depreciation of $1,346

I asked to reflect accurate number of $19K again explaining its an addback for me.

 He changed the number to $16,962.  His answer below:

      Hi,

       Thank you for reaching out to us with your query.

        Regarding your question, yes, we can capitalize the expenses of $19,398 and depreciate them under Section 179. However, please note          that due to business income limitations, the maximum deduction allowed is $16,962. The total depreciation flowing under line 13 will              be $18,308, which also includes depreciation for the furniture placed in service in 2023.

what is he doing and why?   I don't care how he jiggles on the back end. Schedule C line 13 should have $19 k on it, NO?

Am I missing something that is in my best interest that he's doing? Isnt everything carried forward? Business is in operation for two years, if he's interested in me finally showing a tiny profit, why wouldn't he suggest full amount Line13 and reduce my "office expenses"?

I like to defer to experts but this makes no sense.  What they do on the back end I don't care.  My lender doesnt care.  I need $19 K on Line 13  

Any advice would be appreciated!  

[Michael Plaks]

@Amy Konopka

Impossible to give you an accurate answer without reviewing your tax return, so this reply is based on assumptions picked from your description.

If your only taxable income comes from this Schedule C, I do not know how you would qualify for any loan anyway, even with a ~$20k profit after adding back depreciation. If you also have W2 income, then Section 179 income limitation on Schedule C should not matter.

Also, whether you take $1k of depreciation or $19k of depreciation, after adding it back you have the exact same income for underwriting purposes, so I'm not sure why you're concerned about a reduced amount of depreciation.