Calculating Net Income

[Trevor Dominique]

Hello BP,

I am just curious how you guys factor in capital upgrades into your calculations of net income. 

In my calculation for net income, I accrue for tax/interest/insurance to spread these costs over the year so that we have a smooth net income amount to go off of. However, when I complete an upgrade, say a $10,000 roof, how should I expense this? I am currently just assetting the upgrade on our balance sheet and then depreciating the roof over its tax life (27.5 years), meaning we have a depreciation expense for the roof every month. 

I just want to gauge what other people are doing for their calculations.