VII. Karissa is the registered owner of a beachfront property in Kawayan, Quezon which she acquired in 2015. Unknown to many, Karissa was only holding the property in trust for a rich politician who happened to be her lover. It was the politician who paid for the full purchase price of the Kawayan property. No deed of trust or any other document showing that Karissa was only holding the property in trust for the politician was executed between him and Karissa. Karissa died single on May 1, 2017 due to a freak surfing accident. She left behind a number of personal properties as well as real properties, including the Kawayan property. Karissa's sister, Karen, took charge of registering Karissa's estate as a taxpayer and reporting, for income tax and VAT purposes, the rental income received by the estate from real properties. However, it was only on October 1, 2017 when Karen managed to file an estate tax return for her sister's estate. The following were claimed as deductions in the estate tax return: 1. Funeral expenses amounting to PhP250,000; 2. Medical expenses amounting to PhP100,000, incurred when Karissa was hospitalized for pneumonia a month before her death; and 3. Loss valued at PhP6 million arising from the destruction of Karissa's condominium unit due to fire which occurred on September 15, 2017.