My home and obviously many of my neighbors homes were wiped out by an EF-4 tornado in December. I purchased and gave my next door neighbor some materials to aid in their rebuilding process. For tax purposes would this qualify as a gift or a donation. Also what, if any, ramifications would it have on my neighbors if I put this on my taxes for this year. The total cost of the materials was $2,500, and while it would be nice to be able to deduct some of that off my taxes, the last thing I want to do is have it be detrimental to my neighbors in any way, shape, or form. Helping them is what matters most.
