You only need to report payments for services on a 1099-MISC.
If audited, you would need to supply a receipt for the purchase.
You can never deduct the "re-sale value". You can't deduct something you never had.
(Also be aware that your neighbor could be held liable for claiming the taxable income)
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
