Yes. What you are referring to is a Net Operating Loss (NOL). When an S Corporation has a loss, that loss is reported on the shareholders' personal tax return on Schedule E and that loss can be used to offset other income. If the loss is so large that there is a remaining amount after the offset of your other income, that creates an NOL which can be carried forward. Note that the NOL can only offset 80% of your income (determined without regard to the deduction) and any remaining amount would continue to be carried forward indefinitely.

On your tax return, list your NOL deduction as a negative figure on the "Other income" line of Schedule 1 of Form 1040. 

For more information on Net Operating Losses, please see Publication 546. 

The other issue that was not discussed, was whether or not you even had sufficient basis to take the loss.

Hopefully you are maintaining a basis schedule of your investment in the S corporation.  This is key since it determines allowable loss and will also be needed when you sell or liquidate the S corporation.