Yesterday Yahoo.com reported the wackiest tax exemptions people are trying to put in their 2008 tax filings.

Here is the list of such amazingly and unthinkable tax exemptions, Enjoy and LOL

1. Sperm donation as a charity donation.
2. Toilet paper as business expenses.
3. Gynecologist visit as “repairs and maintenance”.
4. Underwater speakers, the mood lighting and the in-tub stereo – Medical expenses.
5. $50,000 wedding as a business expense.
6. Doggie day care.
7. Unwanted plants as donations.
8. 8,000 in dance lessons as medical expenses.
9. Dog as a dependent.
10. Dog food for his “home security system”.
11. Dog Fido as a landscaping subcontractor.

Although these looks to be a very funny list, it does brings our two important points.. First that people are creative and secondly, people are really desperate and are looking for alternatives. Especially in this kind of economy. I also feel sad for these people. These are good hard working people, whose intention is not to steal or cook up the data; they are simply looking for a loop hole in the system to save few hundred dollars.

I think that they are sill better than the executives at AIG and other big companies where they enjoy lavish bonuses and have team of CPA’s looking for exemptions and deductions.

People do nto think about their taxes or even expenses on daily, weekly or monthly basis. They simply get shocked when they see the credit card statement. At the time of taxes, it is already too late. The year is already gone and you can hardly do anything.

Every penny counts in today’s economy. Everyone should look for deals, coupons and other savings options. No more need to feel shy when you are handing out the 50 cent coupon to a grocery clerk. It is your money and you have the right to save it!

Please do comment on this blog and let me know what you think.

The title really looks silly? Does it make sense? Maybe not…..but read on and you will understand the title.. have some patience!

We all have heard about AIG, its stock, its bad management team, its unreal bonus. …the list goes on and on. AIG has been in the news a lot and always for the wrong reason.

In last one year, the stock price for AIG has dropped from approx $52 to as low as $0.49, which means that if you bought 1000 stocks last year for $52,000 then it is worth only $490 or a drop of over 99% in its value!! And you lost over $51,000!

Now let us talk about My AIG…which means My Automobile Is Great! Surprised by the revelation of the title… actually it makes sense… read on

How many time have you heard that buying a car is never a good investment.. you lose approx 5% of the paid price as soon as you drive your car out of the dealer’s lot. The price of the car depreciates by at least 10% in its first year and by 50% in next five to six years. This reduction in assets value was really bad until last year.. but now it does not look that bad. Even with the worst kind of car you are not going to lose 99% of its cost in 1 year (except when you total it).

Let us do the math: With 1000 stocks of AIG (bought at $52,000) you would lose $51,000 or 99%. Instead of AIG, if you would have bought a shiny BMW, or a Ford, GM or a Mercedes car for $52,000, that car may still be worth $49,000! A saving of more than $48,000. You may even get more for your car, if you had maintained it well with regular oil changes, tire rotation and other scheduled maintenance.

Now tell me my dear readers… which is a better investment….AIG stock or buying a car of course car!! Who can now say that investing in car is a bad idea?

Long live America and its auto industry!

I love my car…My AIG