Allowable itemized deductions lower than what your rehab cost?

[Rik Hunter]

Just got my tax return back from the CPA. It's my first time using one, and since I'm no tax expert, I was shocked to see that I owe taxes and that my wife and I only got the standard deduction because the "Allowable itemized deductions" only amounted to $10,906. 

How is this possible when I have $24,300 in rehab costs alone? How is the $10,906 calculated? 

(Sure, I'm getting higher rents now, and the ROI will pay off eventually, but I would have the same tax situation if I had done no rehab at all.)