Can i offset rental loss against self-employment income?

[Victoria Bezden]

Hello, everyone.

I started to fill out tax return this year and figured out that I cannot offset my $40000 self-employment income towards $20000 rental loss, and I still owe 15.3% self-employment tax which is almost 7 grand. I still can't believe it's true. 

I supposed it works as 40k income - 20k rental loss - 24k standard deduction = 0 tax

Does anyone know if I do can offset rental loss against self-employment income? I appreciate your answers and thoughts.

Thank you!