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!

[Eamonn McElroy]

Income not subject to SE taxes cannot be used to offset income subject to SE taxes for the SE tax calculation.

SE taxes are calculated differently than income taxes.

It's common and possible for someone to owe nothing in income tax but still have an SE tax obligation.