Last-minute tax advice for small businesses

With the Wednesday, April 15 tax deadline literally around the corner, there's still time to take advantage of some last-minute tax tips.

If you're really scrambling, you can file for an extension by April 15 and that will give you an additional six months to finish your returns. However, the extension doesn't allow for any additional time to pay your taxes. You still have to pay what you think you owe or face interest and penalties. With many people trying to save as much as possible and many businesses struggling this year, there are a few tips that could be particularly helpful in the days leading up to April 15.

If you own a business, for example, and it posted losses in 2008, you may be able to use those losses to offset some of the taxes you paid on earnings in the past. The rules on this can depend on both the amount you earned and your corporate tax bracket, but in some cases, you could end up with money back. This year's losses can sometimes also be used to offset future earnings, but in many cases, a company would have to lose a significant amount of money to make the effort of trying to claim this money worthwhile.

This year the government is offering a lot of incentives for small businesses to make environmentally friendly improvements and upgrades. The Database of State Incentives for Renewable Energy details many of the improvements that are available in each state. Some incentives are applicable to purchases as small as Energy Star appliances, and some states allow these environmental incentives to offset corporate and personal taxes.

No matter how tempting, it is extremely important to claim only the deductions that truly apply to you or your business. Since times are tough, the IRS is likely to be looking closely at returns that seem suspicious. Audits and penalties can be very costly, and informers get a big payout. In some cases, they can receive up to 30 percent of the additional tax collected. Though it's not always crystal-clear, you should be able to find all of the information you need to complete an accurate return at IRS.gov.

--Bridget O'Sullivan

Hybrid buses to save money for MBTA

MBTA is stepping up its efforts of becoming more environment friendly. Come Q1 of 2009, 123 buses belonging to the MBTA would be retrofitted with the proprietary Mini-Hybrid Thermal System. These are being built by Engineered Machined Products, Inc. (EMP), leaders in advanced thermal management and oil management products for variety of transportation needs.

The retrofitted buses are expected to become more fuel efficient and control emissions. The piggy bank at the cash-strapped MBTA is sure to swell in the long run. The savings are in the region of 3 to 14%, fuel saved would be in the region of 300 to 1400 gallons per bus, annually. With the current fuel cost, this would easily translate to annual savings of $1,000 to $4,900 per bus.

Apart from MBTA, the two other transportation bodies who availing the services of EMP are TriMet in Portland, Oregon and MARTA (Metropolitan Atlanta Rapid Transit Authority) in Atlanta, Georgia.

MBTA is going green and saving green ($) too! Kudos to them.

'Reduce, Reuse, Recycle' on Freecycle.org

Freecycle.org is an easy way to recycle--especially if you're looking for used goods on the cheap.

This free-trading online network keeps things from going to landfills, so it's great for the environment. One man's junk is another man's treasure and you can find sewing machines, knife sets, plants and just about anything useful.

Leah Ingram spent a lot of money and time on gardening at her home. She had lilac bushes, hardy mums and a butterfly bush that grew to "gargantuan proportions." When it was time to move, she was forced to leave her plants behind because the new residents weren't interested in letting her take the plants with her. Ingram was especially upset a month later when she found out the new residents tore all of the plants up and replaced them with grass.

This time around, Ingram decided to place an ad on freecycle. She instantly received an offer for a small lilac bush, day lilies and two bags of compost soil.

What's the catch? "In some instances I've got to go dig the plants out myself. No problem. I've got a good work ethic and a strong desire to avoid spending money when I don't have to. Sure, I'll spend a little on gas getting to these places, but not nearly as much as I would have paid for mature bushes at a local nursery."

Check out Leah Ingram's blog here.

CU Advocate's Deals of the Day

Ebags: Up to 38% off North Face backpacks

Apple.com: $300 to $900 off refurbished MacBook Pro Notebooks

Macys: Extra 25% to 45% off clearance

Office Depot: Extra 10% off school and office supplies

Consumer United: Save 20% off home insurance if you have auto insurance with our service provider, Plymouth Rock Assurance

CONSUMER WOES: Digging deep into the debt hole

Why do Americans continue to dig themselves into a hole?

Back in the day, people set money aside for personal purchases and saved for surprise expenses. Today, the average American household carries $8,565 in credit card debt, a 15% increase from the year 2000.

In total Americans have $2.56 trillion in consumer debt, up 22% since the year 2000 according to the Federal Reserve Board. For some reason, debt is increasing as most American's incomes are not. We have grown into a consuming society that believes it is OK to be in debt, in order to have that new phone, new outfit, or new car.

Disposable income that must be used for debt (credit card payments, car loans, mortgage interest, principle) is up to 14.5% from 11% just 15 years ago.

The New York Times tells the story of Diane McLeod and her debt hole.

McLeod began debt free, but a divorce caused her to spend and rack up $25,000 in credit card debt. She bought a home soon after with a $135,000 mortgage. Five years later illness and irresponsibility caused McLeod to owe $237,000 on her mortgage.

Now in foreclosure, it is hard for her to see light at the end of the tunnel.

CU Advocate's Deals of the Day

Amazon: Cell phone flask for $13.95

Office Max: Soyo 20-inch WS dual input LCD $150 shipped

Wilson's Leather: Entire site up to 75% off

Vera Bradley: 25% off retiring colors and styles

Consumer United: Save at least 10% off car insurance

CU Advocate's Deals of the Day

Amazon: Save 75% or more on one day sale on July 25

EMS: 40% off all Teva sandals and shoes

Dell.com: Save $250-$375 off Latitude Notebook PCs

Amazon: Logitech V20 notebook speakers $10.24 after rebate

Home Depot: 20% off plus free shipping on Pergo laminate flooring