Under what condition must a donor report previous net gifts made?

In the context of donor reporting for previous net gifts, the correct answer highlights that there are no legal requirements for a donor to report previous net gifts. This means that while donors may keep records of their gifts for their own purposes or for financial planning, they are generally not mandated by law to disclose this information to tax authorities unless specific conditions, such as exceeding gift tax exemption thresholds, apply.

For instance, when considering the various thresholds or limits that exist within tax laws, they may pertain to the aggregate value of gifts within a single tax year or specific monetary amounts that trigger reporting requirements. However, if the overall legal framework doesn't compel disclosure for previous net gifts, then donors have the discretion to determine how they manage this information.

This understanding is crucial for donors as it guides their compliance with tax regulations and helps them make informed decisions about their gifting practices.