Top 5 Tax Deductions Small Business Owners in Kansas City Miss Every Year
Running a business in Kansas City is no small feat — and when tax season rolls around, many local business owners leave money on the table without even realizing it. At All American Tax, we’ve helped hundreds of small businesses reduce their tax liability legally and strategically.
Here are 5 deductions you may be overlooking that could save you thousands:
1. Home Office Deduction
If you run your business from home — even part-time — you may qualify to deduct a portion of your rent or mortgage, utilities, internet, and repairs. Kansas City entrepreneurs often skip this due to fear of triggering an audit, but the IRS has simplified the rules in recent years.
2. Vehicle Expenses
Do you use your personal vehicle for business? Mileage, gas, insurance, maintenance, and even lease payments can be deductible. For those driving between job sites in Olathe, Overland Park, or throughout the metro, tracking your mileage can be a big money-saver.
3. Startup Costs
If your business is under 5 years old, you may qualify to deduct up to $5,000 in startup costs — including legal fees, website development, and marketing. Most Kansas City startups forget to claim this in their first few years.
4. Retirement Contributions
Setting up a Solo 401(k) or SEP IRA not only helps you build long-term wealth, it can also slash your tax bill today. This is a powerful tool for freelancers and sole proprietors in Missouri and Kansas.
5. Professional Services
Payments to accountants, legal professionals, consultants, and even software subscriptions like QuickBooks are fully deductible. If you’ve paid for tax prep but didn’t deduct it, you’re literally giving money away.
Bonus Tip: Get Local Help — It Matters
Kansas tax laws can differ slightly from federal rules. That’s why working with a local Kansas City tax professional gives you an edge. We know what applies at the state and city level, and how to structure your deductions properly.
Final Thoughts
Every deduction you miss is money you could have reinvested into your business. Whether you’re a contractor in Lee’s Summit or an online business in downtown KC, the right strategy makes all the difference.
📩 Ready to Maximize Your Deductions?
Schedule a free consultation today with All American Tax and see what you’ve been missing.
