Yes a loss on the business Schedule C will be deducted from all your other income. If you have large equipment expense yo may have to add it as an Asset and depreciate it over several years instead of expensing 100% now.
IRS overview of Depreciation
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/A-Brief-Overview-of-Depreciation
2018 new IRS info
https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-...
For a loss.......
Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year. And you have to answer yes to both questions about exclusive and regular use, not just one. The area of your home office must be used regularly and exclusively for business to deduct it.
