Our question is do we start depreciating the tractor on the same date the rental was placed in service, Aug. 3, 2022?
Is the tractor a permanent rental asset? I ask, because I seriously doubt the only thing you will use the tractor for is "that" specific rental property. Therefore it would not be a rental asset. So the tractor would not be classified as a rental asset of any type in any way, shape or form. However, you can claim the "actual expenses" incurred using the tractor, such as fuel costs.
We plan on using receipts for the diesel fuel, oil, & minor repairs as capital expenses.
That's what I would do, and if the expenses section has no category for those, I'd list/itemize them in the Miscellaneous Expenses section.
As I understand/interpret your post, the tractor "is not" a rental property asset, and "is not" something that you plan to be utilized on a routine/regular/recurring basis for the production of income. So I would not list it as a rental asset. However, I see no issue with actual costs incurred to operate the tractor *for maintaining/repairing/improving" the rental property.
