If a donation is made under a private document, how is it treated?

When a donation is made under a private document, it is valid but requires tax reporting. This means that while the donation is legally recognized, the donor needs to report it for tax purposes to ensure transparency and compliance with tax regulations. In many jurisdictions, substantial gifts can have implications for gift tax liability, so proper documentation and reporting are essential to comply with tax law.

This choice reflects the importance of declaring various types of donations on tax returns, especially significant contributions that may influence taxable income or involve potential tax liabilities. By reporting such donations, individuals maintain legal accountability and prevent any misunderstandings with tax authorities regarding the status of the donation.

The other options do not accurately represent the situation. A public act would typically involve official documentation or ceremonies, while suggesting it is non-existent for tax purposes overlooks the reality of reporting obligations. Labeling the donation as a formal contract could misinterpret the nature of the private document, as legal validity does not automatically equate to contract status. Thus, the correct framing of the donation's treatment is that it is indeed valid but requires appropriate tax reporting.