You said it is a business, but you may want to review the "Nine Factors" for hobby vs business rules just to confirm that it is a business: [removed]
Assuming it is a business, you must claim all allowable deductions. As Opus mentioned, if those deductions create a loss, that loss will offset other income on your tax return (you are almost certainly "At-Risk", which allows the losses to be used in the current year).
