Which of the following is considered a valid donation?

Prepare for the Donors Tax Test with interactive quizzes and multiple-choice questions. Each question offers hints and explanations to enhance your understanding. Ensure you're fully equipped for the test!

The selection of an oral donation of a cellular phone worth P4,500 as a valid donation highlights the principles related to the donation process. In some jurisdictions, smaller gifts like this can be accepted as valid donations even if they are not formalized in writing, provided they are not above the threshold that mandates formal documentation or notarization.

Typically, the threshold for formal donation documentation is set to prevent disputes and ensure legal clarity. Since the cellular phone's value is below that threshold, it can be deemed a valid donation based on its less formal nature, allowing it to be conveyed orally without needing extensive documentation.

In contrast, larger donations, such as those involving the passenger jeepney, the parcel of land, or the house, often require more formal processes, including written documents to ensure that the transfer of ownership is recognized legally. These larger amounts typically exceed the limits that allow for oral agreements, necessitating more rigorous documentation to safeguard the interests of both the donor and the recipient. Therefore, these options do not align with the criteria for what can be considered a valid donation.

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